1. THE NETWORK IS THE COMPUTER. An Overview of Sun’s Innovation.
Simon Tindall.
Glasgow University - 14th March 07. 1

2. Innovation at Sun Fortune 211 Company Annual Revenues $13+ Billion
Patents 5,000+
Java Devices 3.8 Billion
Java Developers 5 Million
Solaris 10 Licenses 6 Million
Annual Server Units Up 15.8% Y/Y
Cash $4.671 Billion
Annual Storage
Petabytes Shipped 410
Before I launch into the main part of the presentation – these are the basic facts about the global power of Sun.
We are a global IT infrastructure company. We are an a leading innovator in the areas of servers, storage, software and services required to run network services. We spend $2B R&D annually on these technology infrastructure areas, which puts us in the top tier of creators of unique IP in our market. We are a Fortune 211 company. We run thousands of the world's datacenters and huge amounts of the world's data is stored on our equipment. In fact, 37% of the world's data is archived on Sun according to analysts.
The size of the Java and Solaris communities are good example of the reach of Sun's innovation – in terms of developers and devices. Java devices alone represent a $100B global business opportunity according to Ovum.
In 1982 when Sun coined the phrase "The Network is the Computer" it represented a long term vision that set us apart from the industry.  We have since then built a $13B business from this franchise.
At that time, the notion that the network itself was the clue that would unlock a new global potential for all of us. The impact the network has had in 2006 on the computer industry, commerce in general, and in fact every aspect of modern life, is undeniable.  Even beyond the bubble – the continued built out of internet and telecom networks and collaboration or participation by users carries on apace.
NOTE:
Annual server units as reported by IDC's Worldwide Quarterly Server Tracker, February 2006
Petabytes Shipped includes: 110 petabytes of annual disk storage as reported by IDC's Disk Storage Systems Quarterly Tracker, June 2006
Tape petabyte data is a rough internal calculation of 300.
Worldwide Employees 36,250
Annual R&D $2+ Billion
Business Presence 100 Countries

3. 1. Products 2. Technologies 3. Communities 4. Business Models
Our Innovation Focus
1. Products
2. Technologies
3. Communities
4. Business Models
These are the five areas where our IP has has been most impactful:
1. products
2. technologies
3. communities
4. business models
5. workplace
5. Workplace

4. Single-Thread Two Seater

5. Multi-Thread Mass Transport

6. Coolthreads Technology
Revolutionary 8 cores, each with 4 threads
Essentially 32 systems on 1 chip.
Massive performance advantages in about 70 Watts – less than most household light bulbs
16 cores, 4 threads taped out. Hexa-deca-core.
Niagara-based systems: only servers qualified for energy rebates
In November 2005, Sun launched the industry's most significant innovation in server processor design in recent history with the UltraSPARC T1 processor, codenamed Niagara.
With 8 cores, each supporting 4 threads, the UltraSPARC T1 processor executes 32 simultaneous threads within a design consuming only 72 watts of power--far less than other processors. The UltraSPARC T1 processor delivered on its promise to revolutionize server technology with breakthrough performance levels while dramatically reducing power, cooling and space consumption.
The Sun Fire T1000 and Sun Fire T2000 servers, collectively called Sun Fire CoolThreads Servers have exceeded industry expectations. These servers have set World Record performance and efficiency benchmarks across a range of the common commercial workloads, while winning many new customers across industries and generating rave reviews from the press and media. Sun Fire CoolThreads servers have become one of Sun's fastest ramping products ever.
Sun designed the Solaris 10 Operating System for chip multithreading giving UltraSPARC T1- based systems new functionality for optimized utilization, relentless availability, unparalleled security, and extreme performance.
You can experience the benefits of CoolThreads technology for yourself by taking a Sun Fire T1000 or Sun Fire T2000 server for a test drive via Sun's no risk, no obligation, no cost, 60-day trial. Sign up for the Try and Buy program today.

7. Consolidation For Reduced Energy Use
Sun Provides the Ideal Platforms
Reduce the number of servers by up to 10:1
Cut power consumption cost in half!
Increase capacity by 5x or more
Add more apps, richer services/content
A 10:1 reduction in the number of servers can be realized by customers with Sun Fire CoolThreads servers based on an analysis using the AMT-c tool, a consolidation ROI tool.
The comparison was done with 200 older Dell systems. They were hosted
on a Dell PE 2650 with Intel Xeon processor at 2.4 Ghz with 2 CPU each
and can be consolidated onto 20 Sun Fire T1000 running Solaris 10 and
containers.
The Dell machine average process utilization was 25% and the
consolidated Niagara systems, 80%.

8. Sustainability is here to stay.
IT Equipment Cost
$/yr
IT Energy Cost
Time
Source: IDC
Increasing power density is shifting the balance of cost

9. Project Blackbox Project Blackbox “Instant-on” and rapid deployment
Breakthrough economics – scalability and use of standard size components
100% virtualized infrastructure: “Build once, deploy anywhere”
Convenience and flexibility: “Where you want it, when you want it”
Project Blackbox
Here's an example of extreme innovation.
On October 17th,2006, we announced Project Blackbox, and you'll probably never look at an ordinary shipping container quite the same way again. Project Blackbox is a prototype of the world's first virtualized datacenter--built into a shipping container and optimized to deliver extreme energy, space, and performance efficiencies.
Designed to address the needs of customers who are running out of space, power and cooling, Project Blackbox packages compute, storage, and network infrastructure capabilities into scalable, modular units outfitted with state-of-the-art cooling, monitoring, and power distribution systems. Housed in a standard 20-foot shipping container for maximum flexibility, Project Blackbox will be easily transported using common shipping methods. Simple hookups for water, AC power, and networking will enable customers to quickly deploy Project Blackbox upon delivery.
Headed toward productization in mid-2007, Project Blackbox engineers the cost, complexity, and rigidity out of legacy datacenters. By applying Sun's trademark innovation to the constraints of the traditional datacenter, Project Blackbox delivers four unique advantages:
Project Blackbox's innovative design will offer businesses unparalleled speed, flexibility, and economics in deploying IT resources anywhere at any time. Customers will be able to easily acquire and deploy a complete, "instant-on" modular datacenter in one tenth the time it takes to build a traditional datacenter, deploying in a matter of weeks versus years. Once ordered, Project Blackbox will be configured, transported, and rapidly deployed, and the virtualized datacenter will simply work in the box – and all this at 1/100th of the initial cost of a traditional 10,000-square-foot datacenter, and one fifth the cost per square foot, as well as be 20 percent more efficient.
Project Blackbox will also require about one third of the space of a conventional deployment with equivalent compute power. Savings are gained by speeding deployment cycles; leveraging standard components; optimizing performance, power, and cooling; and enabling customers to place datacenters in the most cost-effective locations for their businesses.
sun.com/blackbox

10. Project Blackbox.

11. The Virtual Display Client
... with Zero Administration
Sun Ray Thin Clients
Average life – 15 years
Power – 15 watts, 24 includes servers
Heat ~80BTUs
Noise – Zero dbs
Users per CPU – 25:1, Soon 500:1
No viruses, no data loss
Versus Typical Industry PC
Average life – 3 years
Power: 200–250watts
Heat and Noise ~850 BTUs, ~5dbs
Viruses, spyware, data loss
94% of users have power maintenance disabled on their PC (EPA estimates)
315M PCs currently waiting disposal
A 24kg PC uses 1.8tons of raw materials in its construction ( UN report 2003)
During its life a PC Generates .45tons of CO2, 108kg waste and uses 10GJ of energy( Digital Europe project FTF '2002 )
Sun Ray is a Low Carbon Technology ...
Defence & Intelligence ( SNAP ), Financial Services ( STAR ) all have multiple devices connected to different networks based on SunRay advantages ....
Up to 10 devices to a desk PC + aircon x 10 = 8,000 watts
One Sunray - Sunray + SRS share + aircon watts = 100 watts
Gartner estimates that for every watt of energy used by IT 3 watts of air conditioning are required
An estimated 30 million computers are thrown out, organic pollutants and all, in the United States every year. Of those, only about 14 percent are recycled, according to the Environmental Protection Agency.
Throw the lead from an estimated 300 million televisions that have been sold in the United States over the past 20 years into city dumps, and some of it will inevitably end up in water supplies, according to the National Safety Council.
Personal computers are a growing waste management problem. In 1998 alone, more than 20 million PCs became obsolete in the US, and fewer than 11 percent of them were recycled.1 The rest -- almost 18 million computers -- were landfilled, incinerated, or stored away in closets or warehouses. By 2007, the cumulative number of obsolete computers in the US is expected to rise to 500 million.2 Although recycling facilities for computers are increasingly available, techniques for waste prevention, such as extending computer lifetimes, need to be improved.

12. The Strategic System Innovation Delivery Platform
The best open, multiplatform, secure, scalable, OS environment for tomorrows networks.
Why is Solaris so important?
The operating system is the heart of any customer's server infrastructure & the Solaris 10 OS is simply the most most advanced enterprise-class quality OS you can buy. Solaris is the ideal platform on which to consolidate, potentially cutting your staffing and IT infrastructure costs by more effectively utilizing system resources, improving availability and more quickly diagnosing and resolving system issues.
Solaris holds more than 100 world records for performance. Customers are reporting tremendous application performance improvements from Solaris 10. Here are just some innovations that customers love about Solaris ...
dTrace allows them to tune their existing 32 or 64 bit applications to improve performance by orders of magnitude in only hours.
Solaris Containers allow customers to achieve better security and fault-isolation of production and development applications. They support a server consolidation strategy by allowing the workloads of many servers to execute on a single server .
ZFS is hot - the first new file system for quite some time. With Thumper combining Solaris ZFS, fast x64 servers , and up to 24TB of storage, we can offer clear differentiation and value.
We have a lot more in the pike as we start to think about the next version of Solaris. For example, the new open source POSTGRES databases in Solaris will be a huge innovation advantage going forward.
On this last point, it's natural that over time, as software features become standardized, they sediment into the OS. Many software vendors are trying to extend their footprint through the inclusion of of middleware features. If you were a customer, wouldn't you rather trust the OS to support your overall platform requirements rather than rely on an application suite to run your business – we have a huge and growing advantage here over time.
Plus Solaris offers the industry's best investment protection. Solaris OS is the only OS that has binary compatibility on supported platforms and source code compatibility between SPARC and x64 systems.
Sun open sourced the Solaris OS and built a development community called OpenSolaris in June of This community is a combination of code, tools and expertise that serves as a platform for innovation. It gives open source developers access to rich technologies only available in Solaris 10. The OpenSolaris code has a variety of uses and is the basis for future versions of the Solaris OS product and third-party products and distributions.

13. Storage Virtualisation ZFS
Allowing big disk pools to be simply aggregated together.

14. What about the Network ? Parallelism & Virtualisation of the Network.
Today, most ports are single threaded.
More threads = More ports = Increased cost & management.

15. Project Nepture & Crossbow
10GbE network card
Allocates multiple TCP streams to different processer threads.
Reduces cards, cabling, ports & spend.
Additional benefits to s/w license costs.
List $498.

16. Business Model Based on Open Source
Sharing Innovation Everywhere!
We share IP and build communities to broaden market opportunities for Sun and Sun partners
Largest open source contributor on the planet!
Making money through world-class service and support
Zero barrier to entry
We share technologies and build communities that help broaden opportunities. We view open source as the ideal development and business model for today's massively connected Participation Age economy. Why? Because it offers freedom to every user and developer by encouraging genuinely collaborative innovation.
We are the open source leader, contributing multimillion line code bases around which communities such as Java and OpenSolaris have formed and continue to innovate.
We open source all of our software including Solaris and Java ES, and Sun's implementation of the Java platform. By open sourcing our technologies, the community is encouraged to download it, examine it, provide feedback and enhancements to it, and develop applications based on it.
Sun has some great offerings influenced by Open Source innovation, including:
Solaris Enterprise System—enterprise-class OS infrastructure platform at no cost, built on OpenSolaris
Java platform—the platform of choice for enterprises and organization worldwide
Linux from Sun—leading, branded linux operating systems
StarOffice—the full-featured office productivity suite alternative
NetBeans—an open source developer tools platform and IDE
OpenSPARC—open source project based on the 64-bit, multithreaded UltraSPARC T1 processor
sun.com/opensource

17. Network.com – the Future of Service$1
No surprises
No hidden fees
No minimums
No barrier to exit
$1/CPU-hr
Sun is changing the very nature of computing by delivering access to enterprise compute power over the Internet with its Sun Grid Compute Utility. Sun Grid provides easy and affordable access to an enormous computing resource for the predictable and all-inclusive price of $1/CPU-hr.
Sun Grid provides zero barriers to entry and exit. You can access the computing power you need, when you need it, with no hidden costs or long-term contractual obligations, increasing or decreasing your usage as demand requires. You only pay for what you use; Sun Grid is on your terms, not ours.
Sun Grid radically simplifies the way you select, acquire, and use next-generation IT infrastructure. Sun Grid allows you to derive immediate productivity and economic benefits from our open, grid-based computing infrastructure. This utility model gives you more choice and control on how you purchase and leverage IT power for competitive advantage.
Because you use Sun's assets, paying only for the compute cycles you need, you can increase data center capacity and better manage project and usage volatility – while transferring risk to Sun. Sun Grid enables businesses, scientists and researchers to optimize performance, speed time to results, and accelerate innovation without investment in IT infrastructure build-out and without the long-term lifecycle costs related to capital, management, depreciation, and floor space.
Many organizations are faced with resource utilization issues – they need vast amounts of compute power, but only at certain times. The rest of the time, resources are underutilized. Compounding this problem is the increased dependence on computationally intensive processing, which is now filling every square inch of data centers—imposing a substantial real estate and energy expense burden. Using Compute Utility, you can “plug into” an agile, reliable, cost-effective infrastructure that allows you to offload compute power and applications with optimal security.
Computing Becomes an Operational Expense

18. Web-based, No-Cost, Risk-Free 60-Day Product Trial
No budget requirements, paperwork approval hassles
Fully supported during the free trial period
Over 20 blogs of testing and performance results
Buy our products, or return them at absolutely no cost
97% of Try and Buy Program participants* recommend this program
This is a free 60-day product trial that expands concept of free software trials to hardware & services. It takes concept of 'open' and applies it to marketing and product reviews.
Customers and prospects can test Sun's new products and technologies in their own environments before investing through Sun's easy-to-use, web-based program that offers the widest selection of SPARC or x64-based servers, workstations and storage products available from any company. Products are available for a free, 60-day trial. No other company offers this extensive of a trial system program at absolutely no cost. This allows people new to Sun to make confident decisions and recommendations to convert to Sun's products and technologies by proving their performance and benefit in their own environment. The Try and Buy Program gives customers peace of mind at no cost or risk to them.
Don't take our word for it, let Sun's systems prove themselves in your environment. With a no-cost, risk-free 60-day trial. Then, either buy it, or return it at absolutely no cost to you! 97% of surveyed Try and Buy Program participants* recommend using the program and would use it again themselves. Now, there's no reason not to test Sun's products.
No one else offers this flexibility. IBM, HP, Dell do not offer a similar web-based Try and Buy Program.They offer loaners and early access units, like Sun, but no web-based, open access trial program.

19. Java Powers the Planet Printers Robots PDAs Game Consoles
Parking Stations
Printers
5M Java developers
1,135 Java Community Process (JCP) members
Java on devices − 4 Billion
Java on the desktop − 800 Million Java Desktops
Java in the data center − Java Enterprise System − over 1 Million subscribers
$100 Billion Java economy
Java JDK – Java Runtime now open sourced.
Telematics
Settop Boxes
Robots
PDAs
Cash Registers
Webcams
Because we shared Java since day 1, we have created an ecosystem worth over $100 billion, and a technology that stands for “excellence”.
This brand is recognized by almost 89% of tech-savvy consumers – and 100% of IT professionals.
The Java platform itself continues to evolve and improve through community participation
1165 JCP members and over 308 JSRs (51% led by companies other than Sun), plus over 5 million Java developers worldwide.
Over 1.5 billion Java technology-enabled handsets in the market worldwide available (as of end of December 2006, source: Ovum Wireless Media Service). Ovum also estimated that 8 out of 10 new phones that shipped in 2005 were Java powered phones. Java is in over handset models (Sun, April 06). 180 operators are deploying Java technology data services (Nokia, November Developer Newsletter), and Java ME is the #1 mobile application development platform (Evans Data, Spring 06). On phonescoop.com, a web site that allows you to search for mobile phones according to your specifications and features you would like in your ideal phone., “Java” is a category in the “Feature” list.
Over 2 billion Java-card based smart cards (Sun estimate), which make it the leading smart card technology on the market. Java Powered settop boxes reached 6 million units (Industry Census, April 2006).
All of these devices add up to well over 4 Billion Java technology-enabled devices!
Game Consoles
Lottery Terminals
Autonomous Vehicles

20. Eben Moglen, Founding Director of the Software Freedom Law Center
OpenSPARC.net
First 64-bit, 32 thread processor design with RTL Verilog RTR code available under GPLv2
And support publications and tools:
HyperVisor API for OS ports
Verification and Simulation models
ISA Specification. Develoment Tools.
Free at since March 21 ’06
Over 1600 code downloads the first week
Active Community Participation includes:
Linux ports under way by members
Contributions from EDA, FPGA, Fab Industries and start-ups and universities
With OpenSPARC, Sun is pioneering a true Open Source model in hardware.
The objective here is to do in hardware what we've done very successfully in software: get an extended community of hardware players participating and innovating around a cool new hardware technology.
“Sun’s decision to release Verilog source code for the UltraSPARC hardware design under a free software license is a historic step – Sun is showing its profound understanding of the forces shaping our technological future in making this decision”
Eben Moglen, Founding Director of the Software Freedom Law Center

21. Middleware Growth Identity management – Waveset & Neogent.
SOA – SeeBeyond.
Secure Global Desktop ~ Tarantella.
More to add....

22. Sun’s Open Work Program
A global, location-independent program providing technologies, workspaces and best practices
2006 EPA Award: 1st in nation for commuter friendliness
Participation
Benefits
Flex Location Workers 14,803 Participants 46% of Work Force
Flexible Offices 127 Locations Worldwide
Real Estate 6,600 Seats Saved/Avoided in FY06 = $63.9M
Sun Ray - thin clients Over $24M Saved Annually No-Cost Moves and Energy Savings
Carbon Reduction ,000 tons/year and growing
Another example of Sun benefiting the environment and employee work-life balance.
Our internal Open Work program (NOTE to Presenter: now called open work externally – we cant use the iWork name because it's an Apple trademark) is a company wide initiative using Sun technologies. Our thin clients, desktop software, servers etc. Look at the participants and the results to our bottom line!
Sun has been designated as one of the Best Workplaces for Commuters by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT). For the third year in a row, Sun is among the top 10 FORTUNE 500 companies that lead the country by providing outstanding commuter benefits to a significant portion of its U.S. workforce to help decrease air pollution, traffic congestion, and dependence on fossil fuels. Sun tops the rankings as the number one company in the Computer and Office Equipment industry.
Best Workplaces for Commuters, a voluntary partnership program designed to cut traffic congestion and traffic-related air pollution, recognizes employers that provide environmentally friendly commuter benefits to employees. Offering these commuter benefits identifies Sun as an organization committed to reducing pollution, commuting costs, traffic congestion, and employee stress caused by single-occupant vehicle commuting.
Sun provides an array of benefits that help employees pursue environmentally friendly and cost-effective commuting strategies. Sun's commute programs have eliminated more than 3,000 tons of CO2 emissions and have saved employees hundreds of thousands of hours that otherwise would have been wasted in bumper-to-bumper traffic.
Sun's flexible work program for its mobile and distributed workforce, called Open Work, consists of leading-edge technologies and forward-thinking work practices that create an innovative, productive work environment where the network is the computer and employees can work anywhere, any time using any device. The program offers flexible work choices that include the option to work from home or a local drop-in center which allows employees to spend less time and money on commuting. Sun employees also use SMART (Sun Microsystems Alternative Resources for Transportation) programs and services which give up-to-date commuter information, incentives for taking transit, biking and walking to work as well as shuttle rides to better utilize public transportation options near Sun campuses. Full press release:

23. Platforms & Applications
Sun Labs Project Focus
Advanced Hardware
Advanced Software
System Sciences
Security & Networks
Platforms & Applications
We have active projects in the five areas listed on this slide. Information on the projects is available at: Most projects have links to additional websites and technical data.
Advanced Hardware: - VLSI Research – Asynchronous technology, Proximity Communication, and Electric, an open source, Java-based schematic to CMOS circuit layout program, efficient on-chip wires; FLEET – programming next gen CPUs - Next Gen. Switch Architecture
Advanced Software: - Next Generation Programming Languages: Fortress - Solaris port to PowerPC architecture - Java: Maxwell VM, Squawk small VM, SSRG – software for next generation systems
System Sciences: - Computer Architecture and Performance - Management Science including RADAR - Operations research, a forecasting system that manages sales data and billing data. - Network protocols and security - Distributed systems, including Project Darkstar, Sun's Java-based gaming server - Celeste – automatic storage
Security and Networks: Security, Cryptography and Policy; System Security Protocols and standards: Policy Languages and ECC standards development Secure Ad-hoc Communications Network Computing and Network Optimization
Platforms and Applications: - Media Architecture and Standards: Media receiver; DreaM – digital rights management tied to the individual, not a device; OMC, HANA, - Search, Search Inside the Music - Sun SPOTs - Wireless Sensors/actuators - ePBX - Collaborative Environments

24. Project SunSPOT The Network of Things.
Wireless sensor project.
Built around a java-based platform, easily programmable.
Cheap sensors, no wiring, no external power req, can deploy over awide area, self-finding.
Moving towards 'smartdust' sensors.
Actively looking for partners.

25. Project DReaM
A standards-based, royalty-free architecture for building interoperable DRM implementations.

26. Search inside the Music
A new look on Search Engines

27. Get Insights on Sun’s Hottest Innovations
Tune in every two weeks for the podcasts
Developers: check out SDN Channel, blogs.sun.com/sdnchannel
IT Managers: sign up for the Inner Circle e-newsletter, subscriptions.sun.com
Executives: sign up for the Executive Boardroom e-newsletter, subscriptions.sun.com
Would you like to be up to speed with the latest Sun innovations?
Tune in every two weeks to hear Sun's Hal Stern, VP of Global Systems Engineering interview Sun executives, partners and customers in a fun audio podcast program revealing Sun's “secret sauce” a world class innovation story.
All the postcasts are available at blogs.sun.com/innovation. Past programs include:
Project Blackbox
Project DReaM
Does the OS matter (video with J. Schwartz and Greg P.)
Innovating Ahead (video with J. Schwartz and Greg P.)
Open Sourcing Java Technology
Sun's Work With DARPA Accelerates New Technologies for Customers
Try & Buy with Christine Beury and DigiTar's CEO Dale Williams
Sun SPOTs
Thumper & Managing the Information Explosion
Systemic Security
blogs.sun.com/innovation

28. THANK YOU 28