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Computer giant Sun Microsystems (Nasdaq:SUNW) has signed an OEM agreement with Yokneam-based startup Vsoft.

The agreement determines the companies will provide their customers a solution that combines Vsoft's VideoClick digital video distribution and management software with Sun's hardware and Solaris operating system.

"The contract with Sun will help Vsoft provide its customers with solutions based on open international standards, which incorporate VideoClick software with Solaris servers and advanced Java applications," said Vsoft CEO Tsuli Hershkorn. "These integrated solutions enable rapid assimilation and operational flexibility and answer the needs of the customers more efficiently."

According to the CEO, several deals have so far been signed that integrate Sun's Solaris OS with Vsoft's VideoClick software. Most of the deals were signed in Japan, by NTT, Toshiba and several universities.

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Founded in 1995, Vsoft provides software solutions for video applications by demand and for digital video management in organizations. Vsoft's flagship product, VideoClick provides solutions for the digital video market in a communication network environment.

VideoClick is used in e-learning and to manage video content, especially in the academic studies and organizational instruction markets. It is also used by hotel and accommodation service providers in their management of entertainment video services.