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Network systems

Sun later sold many new and replacement network systems to the U.S. government. In 1986 Sun made its largest single sale of computers to a government agency when the National Security Agency signed an agreement for $500 million worth of Sun equipment.

Sun's engineers pioneered many important technologies adopted by the computer industry. In 1984 it released its Network File System software, which became a standard for computer file sharing across networks. In 1987 Sun became the first large computer company to use reduced-instruction-set computing (RISC) microprocessors in its primary product lines.

Wintel competition

Despite its technical and financial strengths, the company faced growing competition in the 1990s from so-called Wintel machines--computers running Microsoft Corporation's Windows NT operating system on Intel Corporation's Pentium microprocessors. Although Sun's equipment was generally much faster and more reliable than Wintel systems, it was more expensive and far more complex to operate. Wintel computers controlled more than 85 percent of the worldwide market share for desktop systems, but they had a much smaller share of the market for the more profitable high-performance workstation and server systems used in business and on the Internet. Sun generally sold well in the server market, where performance was usually more important than price.

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