1Slide

Investor Relationshttp://www.sun.com/investors

SUN MICROSYSTEMS Q209 QUARTERLYRESULTS RELEASE

2

• Ron Pasek – VP, Corporate Treasurer

• Jonathan Schwartz – CEO & President

• Mike Lehman – CFO & Executive VP, Corporate Resources

Speakers

3

Top Level P&L

Revenue 3,615 2,990 3,220 230 8% (395) (11%)

Gross Margin 1,753 1,201 1,350 149 12% (403) (23%)

Gross Margin % 48.5% 40.2% 41.9% 1.7 (6.6)

Operating Expenses * 1,491 2,851 1,549 (1,302) (46%) 58 (4%)

Operating Income 262 (1,650) (199) 1,451 88% (461) (176%)

Net Income 260 (1,677) (209) 1,468 88% (469) (180%)

Operating Margin % 7.2% (55.2%) (6.2%) 49.0 (13.4)

EPS GAAP $0.31 ($2.24) ($0.28) $1.96 88% ($0.59) (190%)

Non-GAAP Net Income ** 409 (65) 114 179 275% (295) (72%)

EPS Non-GAAP ** $0.50 ($0.09) $0.15 $0.24 267% ($0.35) (70%)

* Total Operating Expenses includes SG&A, R&D, Purchase IPRD, Restructuring, & Intangible Impairment charges. ** See Slide 15 for a reconciliation of GAAP Net Income and EPS GAAP to Non-GAAP Net Income and EPS Non-GAAP, respectively.

Q208 Actuals

Q109 Actuals

Q209 Actuals

Q-Q Change

Q-Q %Change

Y-Y Change

Y-Y %Change

Pts Pts

Pts Pts

4

Revenue Products Revenue down (14)% Y/YServices Revenue down (6)% Y/Y

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209$0

$1,000

$2,000

$3,000

$4,000

PRODUCTS/SERVICES

Reve

nue (

milli

ons)

Fiscal Quarter

Year /Year Change

Services Revenue (% of Total)Products Revenue (% of Total)

37%

63%63%

7%

37%

63%63%

3%35%

65%65%

0%

38%

62%62%

1%

38%

62%62%

1%

39%

61%61%

(1)%37%

63%63%

(1)%

41%

59%59%

(7)%

40%

60%60%

(11)%

5

RevenuePRODUCTS/SERVICES

Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209-20%

-10%

0%

10%

20%

30%

40%

50%

-13%

-3%

-10%

3% 3%

-5%-2%

-7%

2%

15%

21%

31%

15%

7%

1%-1%

1%-1%

-3% -4%

-11%-14%

4% 5% 5%7% 6% 6%

0% 0%

7%

23%21%

25%

20%

6% 7%

3%1%

5%3% 4%

-1%

-6%

Products RevenueServices Revenue

Reve

nue Y

/Y C

hang

e %

Fiscal Quarter

Year /Year Change

6

Billings Disclosure by Category*($Millions) Q207 Q307 Q407 FY07 Q108 Q208 Q308 Q408 FY08 Q109 Q209Systems BillingsSolaris SPARC Enterprise Servers 908 762 1,076 3,388 793 978 702 939 3,413 576 662 Change % Y/Y 16 -9 1 2 23 8 -8 -13 1 -27 -32Solaris SPARC CMT Servers 138 142 220 608 185 282 299 353 1,119 338 369 Change % Y/Y 743 218 84 237 70 105 110 61 84 83 31X64 Servers 176 162 192 684 169 157 186 195 707 176 175 Change % Y/Y 47 36 28 44 10 -11 14 1 3 4 11Other Systems Products 466 388 462 1,737 356 367 282 286 1,292 156 130 Change % Y/Y -14 -21 -23 -19 -15 -21 -27 -38 -26 -56 -65Subtotal*** 1,687 1,455 1,950 6,418 1,503 1,785 1,469 1,774 6,530 1,246 1,336 Change % Y/Y 15 -3 1 5 13 6 1 -9 2 -17 -25

Software BillingsJava 41 60 94 219 29 45 57 88 220 34 67 Change % Y/Y 3 5 17 13 21 10 -4 -6 1 18 47MySQL / Infrastructure 45 50 74 198 25 52 40 91 208 52 81 Change % Y/Y 9 79 35 43 -17 16 -20 24 5 111 55Solaris, Management and Virtualization 65 52 55 221 44 59 49 64 216 38 42 Change % Y/Y -1 3 2 12 -12 -10 -4 16 -2 -14 -29Subtotal*** 151 162 223 639 97 156 147 244 644 124 189 Change % Y/Y 3 20 18 20 -6 3 -9 9 1 27 21

-204 -117 -320 -602 -126 -347 -142 -295 -910 -114 -156Total Computer Systems Revenue*** 1,634 1,500 1,853 6,455 1,475 1,594 1,473 1,722 6,264 1,257 1,369

Storage BillingsDisks & Storage Arrays 386 345 387 1,412 302 407 350 468 1,528 311 386 Change % Y/Y 7 -2 -7 1 3 6 1 21 8 3 -5Open Storage 17 9 24 50 9 26 23 33 91 25 31 Change % Y/Y 55 155 37 83 162 21Tape 277 242 266 990 196 282 195 279 953 188 245 Change % Y/Y -25 14 -8 -8 -4 2 -19 5 -4 -4 -13Other Storage 12 -4 22 37 14 17 16 12 58 11 8 Change % Y/Y 20 -128 153 -12 69 41 458 -44 55 -16 -54

-65 -32 -60 -172 -17 -77 -54 -128 -276 -28 -100Total Storage Revenue*** 626 560 639 2,316 505 655 530 664 2,354 507 570

Total Products Revenue 2,260 2,060 2,492 8,771 1,980 2,249 2,003 2,386 8,618 1,764 1,939

Services RevenueHardware, Software Support (Including Solaris & Other Software) 1,001 950 1,024 3,962 979 1,041 961 1,042 4,023 963 946 Change % Y/Y 5 5 4 8 -1 4 1 2 2 -2 -9

Professional and Education Services 305 273 319 1,140 260 325 302 352 1,239 263 335 Change % Y/Y 11 15 0 12 7 7 11 10 9 1 3Total Services Revenue 1,306 1,223 1,343 5,102 1,239 1,366 1,263 1,394 5,262 1,226 1,281

Total Sun Revenue 3,566 3,283 3,835 13,873 3,219 3,615 3,266 3,780 13,880 2,990 3,220Notes:

Blade Servers Billings (includes CMT, X64, and Netra) 20 26 43 96 55 44 69 73 241 61 71 Change % Y/Y 0 0 0 0 638 122 162 71 151 11 62

● Solaris SPARC CMT Servers includes all CMT Servers, including CMT Blades and CMT Netra products

● X64 Servers includes X64 Rack, X64 Blades and X64 Netra products and excludes products categorized under Open Storage ● Other Systems Products includes Workstations, Volume SPARC, Netra SPARC, Integrated Products and Networking products

● Open Storage includes the Sun Storage 7110,7210, and 7410, Sun Fire X4500, Sun Fire X4540, J4200, J4400 and J4500 products ● Other Storage includes the NAS products minus Sun Storage 7110,7210, and 7410

*** Excludes service revenue attributable to Systems, Software, and Storage including maintenance and support shown in the Hardware, Software Support line under Services Revenue

Computer Systems Reserves and Adjustments **

Storage Reserves and Adjustments **

● Solaris SPARC Enterprise Servers includes the Datacenter & Midrange server systems

*Billings represent the amount invoiced to customers for products and are subject to cancellation. Billings is not a GAAP financial measurement, and therefore is not an audited number. Billings differs from revenue in that billings are not adjusted for any reserves and are not subject to any of the conditions under GAAP that must be met before revenue is recognized. Accordingly, amounts billed may not lead to revenue and billings should not be viewed as equivalent to, or a substitute for, GAAP revenue. ** Reserves and adjustments represent deferrals, reserves and other reductions of invoiced amounts required under GAAP before revenue is recognized.

7

Billings Trends*

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q2090

125

250

375

500

625

750

875

1,000

1,125

Growth Categories

Open StorageSolaris, Man-agement and Vir-tualization MySQL / Infrastruc-tureJavaX64 Servers Solaris SPARC CMT Servers

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q2090

500

1,000

1,500

2,000

2,500

Traditional Categories

Other StorageTapeDisks & Storage ArraysOther Systems ProductsSolaris SPARC Enterprise Servers

Fiscal Quarter

Billin

gs (m

illion

s)

Fiscal Quarter

Billin

gs (m

illion

s)

* Billings represent the amount invoiced to customers for products and are subject to cancellation. Billings is not a GAAP financial measurement, and therefore is not an audited number. Billings differs from revenue in that billings are not adjusted for any reserves and are not subject to any of the conditions under GAAP that must be met before revenue is recognized. Accordingly, amounts billed may not lead to revenue and billings should not be viewed as equivalent to, or a substitute for, GAAP revenue.

8

TOTAL SERVICES REVENUEYear /Year Change

Services Revenue Support Services down (9)% Y/YProfessional Services/Edu Services up 3% Y/Y

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209$0

$500

$1,000

$1,500

Reve

nue (

milli

ons)

Fiscal QuarterProfessional Services/Edu Services Revenue (% of Total Services)

Support Services Revenue (% of Total Services)

23%

77%77%

6%

22%

78%78%

7%24%

76%76%

3%

79%79%

21%

1%

76%76%

24%

5%

76%76%

24%

3%4%

75%75%

25%(1)%

79%79%

21%26%

74%74%

(6)%

9

Products Margin down (9.3) pts Y/YServices Margin down (2.6) pts Y/YTotal Margin down (6.6) pts Y/Y

Gross MarginPRODUCTS/SERVICES

Gross Margin %-ServicesGross Margin %-ProductsGross Margin %

48.5%48.5%

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209$0

$500

$1,000

$1,500

$2,000

Fiscal Quarter

Gros

s Mar

gin

(milli

ons)

43.8%

45.7%45.7%

1,604

45.0%

44.9%

44.3%44.3%

1,461

44.5%

1,812

47.1%

47.4%47.4%

47.2%

49.2%

48.0%48.0%

1,56148.7%

48.4%48.4%

1,753

44.9%

45.2%

44.8%44.8%

1,46847.3%

42.5%42.5%

1,673

44.3%

40.2%

35.2%35.2%

47.3%

1,20146.1%

39.1%39.1%

1,350

41.9%

10

Gross Margin %PRODUCTS/SERVICES

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q20935.0%

36.0%

37.0%

38.0%

39.0%

40.0%

41.0%

42.0%

43.0%

44.0%

45.0%

46.0%

47.0%

48.0%

49.0%

50.0%

45.7%

44.3%

47.4%48.0%

48.4%

44.8%

42.5%

35.2%

39.1%

43.8%

44.9%

47.1%

49.2%48.7%

45.2%

47.3% 47.3%

46.1%

45.0%44.5%

47.2%

48.5% 48.5%

44.9%44.3%

40.2%

41.9%

Products Gross MarginServices Gross MarginTotal Gross Margin

Gros

s Mar

gin

%

Fiscal Quarter

11

R&D / SG&A Expense* (9)% Y/Y decrease

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209$0

$300

$600

$900

$1,200

$1,500

$1,800

$507$507 $514$514 $514$514 $446$446 $463$463 $457$457 $468$468 $423$423 $411$411

$978$978 $957$957 $958$958 $939$939 $995$995 $989$989 $1,032$1,032$920$920 $916$916

Fiscal Quarter

(milli

ons)

* Total Operating Expenses differ from SG&A and R&D Expenses because Total Operating Expenses includes IPRD, Restructuring, & Intangible Impairment charges.

Year /Year Change

SG&A R&D

(7)% (5)% (12)%(3)% (2)% (2)% 2%

(3)% (9)%

12

Ye a r / Ye a r G r o w t h

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q2090

500

1,000

1,500

2,000

2,500

3,000

Balan

ce (m

illion

s)Fiscal Quarter

Deferred Revenue at $2.6B

Demand Metrics

Q208 Q109 Q209Book to Bill Ratio* 1.07 1.00 1.01

$2,007 $1,922 $1,785Product & Services Backlog ($M) **

* Book to Bill Ratio assumes Services ratio 1:1.

** Services Backlog based on three month backlog horizon

Book to Bill Ratio & Backlog

9%15%

9% 14% 24% 6%8% 9% (4)%

13

Deferred Revenue Products Deferred Revenue up 13% Y/YServices Deferred Revenue down (11)% Y/Y

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209$0

$700

$1,400

$2,100

$2,800

PRODUCTS/SERVICES

Reve

nue (

milli

ons)

Fiscal Quarter

Year /Year Chan ge

Services Deferred Revenue (% of Total)

Products Deferred Revenue (% of Total)

75%

25%25%

9%

77%

23%23%

15%9%

78%

22%22%

14%

22%22%

78%

24%

71%

29%29%

6%

71%

29%29%

8%

69%

31%31%

9%

69%

31%31%

(4)%

65%

35%35%

14

Revenue - Geo North America down (11)% Y/YEurope down (13)% Y/YEmerging Markets down (1)% Y/YAPAC down (20)% Y/Y

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209$0

$1,000

$2,000

$3,000

$4,000

North America/ Europe/ Emerging Markets/ APAC*

* Effective Q1FY09, we began utilizing revised geographic groupings. Percentage of total revenue figures have been adjusted to reflect the change in the compilation of the countries that make up each of our geographic regions.

Geographic revenue reported for Q1FY07 and Q2FY07 has been adjusted to reflect a correction in intercompany revenue to properly report country of origin.

Fiscal QuarterRevenue-Europe (% of Total)

Revenue-APAC (% of Total)

Revenue-North America (% of Total)

Rev

enue

– G

eo (m

illio

ns) 3,566

12%12%

33%

13%

42%42%

3,283

13%13%

33%

13%

41%41%

3,835

12%12%

31%

13%

44%44%

3,219

43%43%

32%

13%12%12%

3,615

12%12%

34%

15%

39%39%

3,266

13%13%

34%

14%

39%39%

3,780

12%12%

33%

14%

41%41%

Revenue-Emerging Markets (% of Total)

12%12%

32%

15%

41%41%

2,9903,220

11%11%

33%

17%

39%39%

15

Non-GAAP Calculation of Net Income

GAAP net income (loss) 133 67 329 89 260 (34) 88 (1,677) (209)

Non-GAAP adjustments:

Purchased IPRD 0 0 0 0 1 24 6 0 0

80 78 74 74 74 76 86 80 72

Stock based compensation 58 50 48 48 52 57 57 49 52

26 35 15 113 32 14 104 63 222

Impairment of goodwill 0 0 0 0 0 0 0 1,445 0

(Gain) loss on equity investments, net 0 (5) (1) (22) 0 0 (10) (8) 3

Settlement income 0 (54) 0 0 0 0 (45) 0 0

Tax effect of non-GAAP adjustments (7) (10) (7) (17) (10) (5) (11) (17) (26)

Non-GAAP net income (loss) 290 161 458 285 409 132 275 (65) 114

$0.32 $0.18 $0.50 $0.32 $0.50 $0.17 $0.35 ($0.09) $0.15500.0% 357.1% 455.6% 190.9% 56.3% (5.6%) (30.0%) (128.1%) (70.0%)190.9% (43.8%) 177.8% (36.0%) 56.3% (66.0%) 105.9% (125.7%) 266.7%

Q207 Actuals

Q307 Actuals

Q407 Actuals

Q108 Actuals

Q208 Actuals

Q308 Actuals

Q408 Actuals

Q109 Actuals

Q209 Actuals

Amortization of acquisition related intangibles

Restructuring and related impairment of long-lived assets

Diluted Non-GAAP net income (loss) per share Change vs. prior year (%) Change vs. prior quarter (%)

16

Server MetricsTotal Server Units Ye a r / Ye a r C h a n g e

x64* Server UnitsYe a r / Ye a r C h a n g e

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q2090

2040

6080

100120

Tota

l Ser

ver U

nits

(th

ousa

nds)

Fiscal Quarter

Fiscal QuarterQ207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209

05

101520253035

x64*

Ser

ver U

nits

(th

ousa

nds)

* x64 servers include x86 32-bit and x64 64-bit servers and blades

22%

4%

10%0%

(5)%(11)%

7%

(5)%

13%

1%

26%

6%2%

28%

2%

39% 15%

(9)%

17

Major News from Sun's Q2 FY09

• Focused on Long-term Growth & Profitability > According to IDC's 3Q08 (Sun's Q1FY09) Worldwide Quarterly Disk Storage Systems tracker,

Sun demonstrated its fourth consecutive quarter of year-over-year revenue growth for total disk storage system sales, with a 25% year-over-year increase in factory revenue. Sun was at the top of the list for year-over-year growth for external disk systems and outperformed the overall market.

> In conjunction with IBM, announced the launch of the Open Document Format Toolkit Union, an open-source software community project organized to make document software more innovative, versatile and useful for business.

> According to the latest Top 500 Supercomputers list, LustreTM file system is managing data on more than 50% of the Top 50 supercomputers and seven of the top 10 supercomputers. Additionally, nine of the top 10 supercomputers are using Sun Storage technologies.

> With Europractice, a European Union-backed non-profit microelectronics design stimulation project, Sun announced a three-year collaboration to promote OpenSPARCTM Chip Multi-Threading (CMT) technology as a reference design among 650 universities and research institutions across 38 countries in the European region.

> Announced plans to align business and cost model with global economic climate through reduction in force and internal reorganization to accelerate the introduction of open source innovations to the marketplace.

> Announced an agreement with Southeastern Asset Management, Sun's largest shareholder, to add two new independent members to Sun's Board of Directors.

18

Major News from Sun's Q2 FY09• Delivered Ground-Breaking Innovations to the Market

> Introduced Sun and Fujitsu's SPARC® Enterprise® T5440 server, a midrange system with industry-leading price points, power management and world record benchmarks.

> Unveiled its Unified Storage System – the Sun Storage 7000 family (“Amber Road”) -- based on industry standard components and Sun’s robust software stack. The system offers optimized performance, breakthrough diagnostics, and increased troubleshooting all while using one-fourth the energy consumption of competing storage systems, resulting in reduced implementation times and up to 75% cost savings.

> Introduced JavaFXTM 1.0, a new platform that merges form and functionality for building Rich Internet Applications with immersive media and content for Web browsers and desktops.

> Announced a new storage blade designed to deliver datacenter efficiency, expanding Sun’s systems portfolio targeted at improving efficiency across the enterprise.

> Introduced a new version of Sun xVM VirtualBoxTM, Sun's high performance, free and open source desktop virtualization software.

> Introduced the updated JavaTM Platform Standard Edition 6 Update 10, significantly improving the usability and performance of the Java platform on desktop computers worldwide.

> Introduced the Identity Compliance Manager, a simple and cost-effective solution to help customers better manage business and compliance risks.

> Announced global efforts in solving accessibility challenges for all devices from cell phones to desktops and Web applications by leading a consortium of more than 20 other companies and organizations. Funded by a grant awarded by the European Commission, the AEGIS Project is based on the Sun-led proposal and technical architecture.

19

Java Enterprise System Subscribers*More than 2.2 million in Q2FY09 with 20% year-over-year growth

Source: Sun Microsystems, Inc., December 2008

Fiscal Quarter

Cum

ulat

ive S

ubsc

riber

s (th

ousa

nds)

Java Runtime Environment Installations*More than 180 million installations in Q2 FY09

Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q20900

160320480640800960

1,120

Cum

ulat

ive In

stall

atio

ns

(milli

ons)

*Windows Systems Only, Starting November 2006Source: Omniture Site Catalyst, December 2008

*Quarterly totals include Java ES (Suites) and core JES

Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q2090

350700

1,0501,4001,7502,100

Key Metrics: Volume Drives Opportunity

Fiscal Quarter

20

Q2 FY09 Sample Customer Momentum • National Center for Atmospheric Research of AMSTAR implemented a new digital storage library that will preserve and

protect valuable scientific data for the next 15-20 years. Based on the Sun StorageTekTM SL8500 Modular Library, the new system will give NCAR 5x its current storage capacity, enabling increasingly sophisticated computer studies of the Earth's climate.

• Rabobank Group, based in Utrecht, Netherlands, wanted to reduce cost and complexity in its multivendor infrastructure. To create a single point of contact and increase oversight of its infrastructure, the bank turned to Sun for a three-year Multivendor Support contract to oversee its existing Sun, HP and IBM systems. As a result of the simplified administration, Rabobank expects to reduce costs by at least 10%, streamline management and improve oversight of its IT environment.

• Wotif.com, a leading hotel reservation Web site in Australia and New Zealand, turned to Sun for a 3-year, unlimited-use subscription for MySQLTM Enterprise and Sun Java Application Platform Suite. The company required a predictable cost model to allow for future growth of its IT infrastructure including its Web operations and needed to ensure the right level of IT support.

• Movistar, a leading mobile telephone services provider in Argentina, turned to Sun for a solution based on the Solaris 10 OS as well as Sun SPARC Enterprise, Sun FireTM and StorageTek technologies. With this new solution in place, Movistar expects to reduce operating expenses and will meet its goal of reducing its datacenter footprint and power consumption.

• iWeb, an internet hosting infrastructure company, looked to Sun's Open Storage technologies to help fulfill its needs for large volume storage. Chosen for their performance, reliability, ease of use and modularity the new Sun solution includes the Sun Storage 7410 System and Sun Storage J4400 array.

• Among Russia's largest chemical companies, Uralkali is one of the world's leading producers of mineral fertilizers. With a high level of business processes automation and a highly developed ERP system covering all fields of the company's activity, Uralkali wanted to minimize their risks and turned to Sun for Support Services that will enable them to run critical applications uninterrupted and minimize technology downtime.

• The University of Tokyo’s Human Genome Center (HGC), part of The Institute of Medical Science, which conducts critical genetic diagnostic research for intractable diseases, decided to replace its existing IT systems with a high-performance computing cluster to boost its research capabilities. Sun, along with a partner, will provide HGC with a solution consisting of Sun BladeTM server modules, Sun storage technologies, the Lustre file system, and Sun HPC Software, Linux Edition.

Continued Strength in Product Reviews Review: OpenOffice.org 3, By John Brandon

OpenOffice.org is a powerful productivity suite–including tools for word processing, spreadsheets, slideshows and more—with one major additional feature: it’s free. OpenOffice 3 is a major upgrade over the previous version, with plenty of new features, native OS support, and all the tools most people would need to get their work done.

Hands-on: OpenSolaris 2008.11 a Major Step Forward for Sun, By Ryan Paul

OpenSolaris is making progress and is steadily becoming a more viable contender on the desktop. Major new features like the ZFS snapshot visualization that expose some of the platform's rich underlying functionality are a good sign that the developers are moving in the right direction.

Sun's T5440 Server Is Built To MultitaskBy Jeff Ballard

Sun's latest multicore server, the Sparc Enterprise T5440, runs rings around more expensive devices when performing a lot of tasks concurrently. It's ideal for databases and virtualization and excels at encrypting and decrypting data thanks to on-board security co-processors.

Sun Trumpets Radically Simple Open Storage Boxes, By Chris Mellor

Sun's radically new 7000 line of storage appliances combines embedded servers, drive arrays and a comprehensive open storage software stack in a low-priced bundle.

● Sun's activity with virtualization continues to shine in NetworkWorld, Linux.com and About.com's Guide to Macs

● eWeek Labs examined VirtualBox 2.1, calling it a “commercial-grade, no-cost, open-source desktop virtualization software that rivals VMWare Workstation”

● InfoWorld’s review of Amber Road said that ZFSTM on the system is “only getting better and better”

● The StarOfficeTM 9 launch resulted in much fanfare across IT news and blogs, ranging from Government Computer News to CRN, as OpenOffice.orgTM 3 reviews continued to appear in Macworld, InformationWeek and others

● Computerworld reviewed the Sun FireTM X4150, saying “there is a wealth of potential uses” for the server

● A TechTarget reviewer said he “firmly believes” OpenSolarisTM will become a serious player in the SMB storage space

Virtual Desktop Infrastructure with Sun Ray 2 DevicesBy Rick Vanover

The Sun Ray 2 series of devices includes refined products that operate nicely in today's VDI landscape regarding network transport, multimedia, I/O redirection and a price point that may surprise you. The Sun Ray 2 devices deliver a great user experience and have several options for back-end configuration to meet most requirements.

VirtualBox 2.1.0 Released: A Look at the Mac VersionBy Todd Ogasawara

VirtualBox has come a long way since the first Mac supported version (1.4.0) was released on June 6, 2007. It is really starting to look like a solid offering in the Mac virtualization hypervisor area. I haven't updated my Parallels Desktop or VMware Fusion to the latest versions yet. And, after a quick look at VirtualBox 2.1.0, I wonder if I will need to.

Review: StarOffice 9 Merits Serious ConsiderationBy Samara Lynn

With added functionality from OpenOffice.org and a price that is a sliver of what Microsoft charges for Office, could StarOffice win over the hearts of VARs and IT decision makers?

Flexibility in the Datacenter with the X4150 By Martin MC Brown

That's what X4150 gives you, flexibility. With 8 cores, 64GB RAM, 8 drives, and 4 GbE ports you can choose a variety of configurations to suit your needs, and if you decide to change your mind, you can do so without changing your hardware, just redeploy it.

Industry Analyst Recognition • "The Sun Storage 7000 family may well be in a class by itself. The embedded hardware functionality and list of

software add-ons are remarkable for the price of this appliance. This new family has the potential to become the most disruptive thing Sun has ever done in storage."-- lluminata, December 5, 2008, John Webster, Illuminata, Computerworld, Subatra Suppiah

• “As a technology, the work Sun has put into JavaFX seems impressive and much welcomed.”-- RedMonk, December 4, 2008, JavaFX 1.0 Arrives – What Now?

• “Innovation doesn’t happen elsewhere. It happens at Sun. The portfolio is in better shape than ever. The retooling of a tired mess into a clean and solid portfolio is complete...the portfolio overhaul has been a success.”-- RedMonk, November 26, 2008, What Should Sun do?

• “The open source market matured. Sun Microsystems was by far the most active vendor in this space. Its continuous investment in the GlassFish app server, the JavaFX user interface, and the OpenSolaris operating system showed ongoing investment in innovation.”-- Forrester, November 20, 2008, Health Check For The Software Industry: Software Market Momentum, H1 2008

• “While each vendor has its own combination of technologies in these early days of cloud computing, Sun certainly has its own building blocks for the cloud: OpenSolaris, Solaris containers and Sun XVM, a policy-based manager of virtualized software stacks that can host Solaris, Windows and Linux as guest operating systems.”-- IDC, November 14, 2008, Sun Reorganizes, and Looks to Leverage Its Open-Source Software Portfolio, Doc # lcUS21527608

• “Sun has now bought into virtualization in a systematic way. It’s got a standalone Xen-based hypervisor; operating system containers; management, provisioning, and update tools; a thin client portfolio; and even a PC virtualization product oriented towards developers.” -- Illuminata, October 13, 2008, Virtualization Strategies: Sun Microsystems

• “SSO Enterprise is an important step in Sun’s attempt to build a viable business on top of its open sourced identity management source code.” -- Current Analysis, October 1, 2008, Sun Introduces Commercial Version of OpenSSO

New Record-breaking Results for Q2FY09375+ World Records and Counting

Telco

ERP

Appl. tier

Java

Web

HPC

BenchmarkModel

Sun SPARC Record breaking performance with Solaris 10 OS on LHS

Enterprise M9000 BSCS iX Release 2 Telecommunications billing benchmark

Sun SPARC Best 4-processor result on SAP SD 2-tier benchmark

Enterprise T5440 with Solaris 10 OS and Oracle Database Server 10g

Sun Blade T6340 Highest dual-processor floating point, integer and OpenMP

compute intensive results with Solaris 10 and Sun Studio 12

Sun Fire X4150 Best price/performance with Sun's Open Source software:

OpenSolaris 2008.05 OS and GlassFish application server

Sun Fire X4240 The best dual-processor web server in the industry on

SPECweb2005 benchmark with Linux OS

Sun Fire X4600 The fastest x86 Java server in the industry with Solaris 10

and latest Java Platform, Standard Edition (J2SE) software

Results were posted during Q2FY09 (Oct.-Dec. 2008). See Benchmark Disclosure slide for additional information.

Benchmark DisclosuresSPEC and the benchmark names SPECweb, SPEComp, SPECfp, SPECint, SPECjAppServer and SPECjbb are registered trademarks of the Standard Performance Evaluation Corporation. Competitive data for each claim is obtained from http://www.spec.org as of the date indicated next to the claim. See respective websites for the latest results. For comparison purposes, the terms CPU, chip and processor are used interchangeably. Each socket can accommodate one chip. SAP, R/3, mySAP reg TM of SAP AG in Germany and other countries. For the latest results and additional information visit www.sap.com/benchmark.

As of 10/13/2008: Two-tier SAP Sales and Distribution (SD) standard SAP ERP 2005 application benchmark: SPARC Enterprise T5440 – 1.4 GHz UltraSPARC T2 Plus, 4 processors / 32 cores / 256 threads,128 GB RAM, Solaris 10, Oracle 10g, SAP ERP 6.0. Results: 7,520 SAP SD Benchmark users, 37,650 SAPS, certification number 2008058

As of 10/21/2008: Sun Blade T6340 (2 chips, 16 cores, 128 threads): SPECompM2001 - 25,952. Sun Blade T6340 (2 chips, 16 cores, 128 threads): SPECint_rate2006 - 160, SPECfp_rate2006 – 121

As of 11/05/2008: 2xSun Fire X4150 (8 cores, 2chips) and 1xSun Fire X4150 (4 cores, 1 chip) 1197.10 SPECjAppServer2004 JOPS@Standard. Details of pricing information and competitive comparisons can be found here: http://www.sun.com/servers/x64/x4150/benchmarks.jsp?display=3#3

As of 12/09/2008: Sun Fire X4600 M2 server, 1037851 SPECjbb2005 bops, 129731 SPECjbb2005 bops/JVM.Sun Fire X4240 server - 37,630 SPECweb2005.

25Slide

Investor Relationshttp://www.sun.com/investors

SUN MICROSYSTEMS Q209 QUARTERLYRESULTS RELEASE