Sun Microsystems is looking at per employee pricing of between $100 and $200 for its upcoming Project Orion software bundle,
undercutting the price of competing bundles significantly, analysts said.
The aggressive pricing could mean users will pay one-tenth of what they are paying for comparable software products today,
Steven Milunovich, a Merrill Lynch vice president wrote in a report released Tuesday.
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 Wednesday. It is possible that there will be different product and license structures for different
uses, for example for data center and development environments, the source said.
Orion will see Sun ship all of its key software products packaged in synchronized quarterly releases. The package 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 flavor of Unix. IBM and Microsoft offer competing packages.
Sun is hoping Orion will generate more software revenue. At $200 per employee for Orion, Sun's top 60 accounts would bring
in $2 billion in annual revenue, Jonathan Schwartz, executive vice president of software at Sun told Merrill Lynch, according
to the report.
Schwartz unveiled Orion in late February, calling it "the redefinition of an operating system."
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