Sun Acquires Server Technology Startup

By Peter Galli  |  Posted 2004-02-10 Print this article Print

Sun on Tuesday announced that it had acquired server-technology vendor Kealia. The deal returns co-founder Andy Bechtolsheim to the fold.

Sun Microsystems Inc. on Tuesday announced that it would acquire server-technology firm Kealia, Inc. The start-up firm specializes in server designs utilizing Advanced Micro Devices Inc.s Opteron processor. Kealia was co-founded and led by Andy Bechtolsheim, a co-founder of Sun Microsystems who served as the companys vice president of technology from 1984 to 1995, where he held a range of roles including chief architect of Suns workstation product line. Sun will acquire the privately-held, Palo Alto, Calif.-based startup in a stock-for-stock merger. Once the deal is completed, Kealia will become the Advanced Systems Technology group within Suns Volume Systems Products organization, headed by Executive Vice President Neil Knox.
Bechtolsheim will return to Sun as senior vice president and chief architect within the Volume Systems Products group, reporting to Knox, and will also be a member of Suns Executive Management Group, led by CEO, chairman and president Scot McNealy.
Kealia was established to develop advanced server technology and McNealy told attendees at its quarterly Network Computing event in San Francisco on Tuesday that the acquisition gave Sun both leading computing technology directly applicable to its systems business, and one of the best computer architects in the world in Bechtolsheim. "It is great to have Andy [Bechtolsheim] back home at Sun. We started the company together while we were at Stanford University over 20 years ago and both of us could not be more excited about working together again. The return of employee number one is back to the future for Sun Microsystems and marks the start of a new wave of innovation at the company. Stay tuned," McNealy told attendees. Click here to read more announcements Sun made on Tuesday at its quarterly briefing. For his part, Bechtolsheim said he was excited about being back at Sun and working to bring the next generation of volume servers, desktops and storage products to market more quickly. "We will see some of the biggest innovations in servers over the next few years and I look forward to working with Sun to deliver this vision to the market," Bechtolsheim said. Check out eWEEK.coms Server and Networking Center at for the latest news, views and analysis on servers, switching and networking protocols for the enterprise and small businesses.
Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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