Sun Microsystems took a moment last week, as it was getting prepared to be eaten by Oracle, to announce a new release of MySQL, the open source relational database management system it bought for $1 billion just over a year ago. MySQL 5.4 brings scalability enhancements for X64 and Chip Multi-threaded (CMT) servers, while general performance enhancements will help users running the software on all types of servers, including IBM Power Systems boxes.

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Sun’s latest Fire servers and blade systems support not just the Sun Solaris OS but also Windows and Linux. The hardware also works with virtualization solutions from multiple vendors, including VMware, Microsoft Hyper-V, and Sun’s own xVM Ops Center and Solaris Containers.

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Sun Microsystems introduced its Nehalem-based server line-up on Tuesday, along with a new networking product that takes aim at an emerging rival in the server market, Cisco Systems.

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IBM is not interested in buying Sun at any price, reports say, and other potential suitors such as HP, Cisco, Intel and Dell are unlikely to come in as a white knight. So where does that leave Sun’s reseller channel partners?

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In stunning blow to Sun Microsystems, the company’s lead chip designer, has resigned. And Marc Tremblay is reportedly taking a job at Microsoft.

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Microsoft puts Sun’s Tremblay in SiArch

Sun has added support for the Open Virtualization Format (OVF) to the latest version of its “open source” desktop virtualization software.

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“This is a real-world game-changer in the commodity x86 marketplace. Sun’s new Solaris advancements unleash the power of the Intel Xeon processor 5500 series, delivering enterprise-class engineering and innovation in this market”

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Open Storage Innovation Ensures Documents, Images, Video and other Internet-based Data Growing at Over 100 Terabytes Per Month Will Live on For Future Generations.

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Sun packs 150 billion web pages into meat locker

Oracle and Hewlett-Packard are believed to have made a joint offer for Sun Microsystems in a deal totaling more than $2bn.

Under the deal, database giant Oracle would have taken Sun’s software portfolio for $2bn, leaving HP with Sun’s vast Solaris, Sparc, and x86 server products, manufacturing and distribution, and user base.

A potential deal between the three is understood to have been blocked by IBM, in the middle of talks to buy the whole of Sun for a reported $6.5bn.

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Sun Microsystems may be keeping quiet as lawyers apparently work out the details of a sale to IBM, but the company has made one announcement: a $30m deal to sell two of its “Constellation” supercomputers to support weather forecasting and academic research in Australia.

Sun will install two complete Constellation systems, with more than 2,500 blade servers based on the impending “Nehalem EP” Xeon 5500 processors from Intel, which will be launched next Monday.

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Another IT head honcho has put his two cents out there about the rumored acquisition of Sun Microsystems by rival IBM.

This time, it is Paul Otellini, president and chief executive officer at Intel, who was speaking to company employees earlier this week about freezing the salaries of its highest paid workers and repricing the stock options for employees that are underwater thanks to the economic meltdown and the ensuing decline on Wall Street.

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There has been much speculation in the media about a possible merger between Sun and IBM. Greg Schulz, an analyst with StorageIO Group (Stillwater, Minn.), thinks the deal will happen.

“It’s not a matter of if; it’s a matter of when and what and how much — i.e. whether IBM only buys some pieces of Sun or buys all of it,” he said.

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