Other goals for the company include revenue growth in the low-to-middle single digits, gross margin of about 43 percent and operating expenses of about $5.6 billion to $6 billion for fiscal 2007. Sun's fiscal year begins July 1.

The move comes on the heels of one of the first major executive realignments at Sun since Jonathan Schwartz stepped in as chief executive officer in April, replacing co-founder Scott McNealy, who is still chairman. Sun last month combined its Sparc and x64-based server groups under one umbrella group, now called the Systems Group, and tapped John Fowler as executive vice president of the new group.