Sun to set Orion pricing

Sun Microsystems is looking at per employee pricing of between $100 (£62) and $200 for its upcoming Project Orion software...

Sun Microsystems is looking at per employee pricing of between $100 (£62) and $200 for its upcoming Project Orion software bundle, undercutting the price of competing bundles significantly.

The aggressive pricing could mean users will pay a tenth of what they are paying for comparable software products today, wrote Steven Milunovich, a Merrill Lynch vice-president.

Sun is expected to announce pricing and shipping details in the third quarter when the first beta of the product package should ship, a source at Sun said.

It is possible that there will be different product and licence structures for different uses, for example for datacentre and development environments, the source said.

Orion will include all of Sun's infrastructure products such as the Sun ONE (Open Net Environment) Web Server, Application Server and server management products along with Solaris, Sun's flavour of Unix. IBM and Microsoft offer competing packages.

Sun hoped Orion would generate more software revenue. At $200 per employee for Orion, Sun's top 60 accounts would bring in $2bn (£1.2bn) in annual revenue, Jonathan Schwartz, executive vice-president of software at Sun told Merrill Lynch.

Schwartz unveiled Orion in late February, calling it "the redefinition of an operating system".

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