Sun hopes the bundled deals will distinguish it from competitors such as Microsoft, Dell Inc. and IBM Corp., McNealy said. Microsoft and Dell can't offer similar deals, he argued, because they sell either hardware or software and not both.
Schwartz also said that Sun plans to begin charging developers who download its version of Solaris for x86 chips, which include processors from Intel Corp. and Advanced Micro Devices Inc.
"We did about 500,000 downloads of Solaris for x86 last year. For the most part that was for no charge, because we wanted to build a developer community. You'll see us start to create a subscription model that lets us harvest some of the opportunity there and build value into the maintenance and upgrade cycle," Schwartz said.
"The bottom line is, we're going to move the entirety of our software business to a recurring revenue model," he said later.
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