Sun Comes Up on Belgian Acquisition

Updated from 12:49 p.m.

Sun Microsystems (JAVA Quote) has snapped up Belgian software specialist Q-layer, as the troubled tech firm prepares to immerse itself in cloud technology.

Cloud services, which offer computer power and storage via the Internet, are expected to be one of the 2009's top technologies as users struggle with shrinking tech budgets.

Sun, which faces stiff competition from Hewlett-Packard (HPQ Quote) and IBM (IBM Quote), is also struggling with falling sales and an increasingly tough economic climate, resulting in a recent slew of job cuts.

In its recent fiscal first-quarter results, Sun posted a $1.7 billion net loss, along with a hefty writedown. During the quarter, Sun's computer-system sales fell 15% year over year, while sales of storage systems grew a scant 0.4%.

Clearly keen to open new revenue streams, Sun has acquired Q-layer for an undisclosed fee, and plans to make the Lochristi, Belgium-based firm part of its cloud computing division.

Q-layer touts its software as a way to simplify cloud computing, enabling users to quickly deploy server and storage applications in the cloud. Founded in 2005, the startup opened its first U.S. office in Mountain View, Calif., last year, and lists virtualization giant VMware (VMW Quote) as a partner.

"Q-layer's technology and expertise will enhance Sun's offerings, simplifying cloud management and speeding application deployment," said David Douglas, Sun's senior vice president of cloud computing, in a statement Tuesday.

The deal will not be material to Sun, according to the Santa Clara, Calif.-based tech giant, although Q-layer's technology will feature prominently in the company's future cloud strategy.

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