IBM to distribute Sun's Solaris server software

NEW YORK (Reuters) - IBM (IBM.N) has agreed to sell Sun Microsystems's SUNW.O Solaris Operating System software to IBM's customers in a deal that pits the competing computer hardware makers against shared rival Hewlett-Packard.

Financial terms of the deal, originally announced on Thursday, were not disclosed.

IBM will distribute the software with certain of its blade server computers. Blade servers are compact servers that typically stand on end like books on a shelf. Sun lags Hewlett-Packard Co. (HPQ.N) and International Business Machines in the blade server market.

Solaris is one of the main varieties of the Unix family of operating systems, known for their ability to safely and securely handle major computing tasks rather than for their ease of use.

(Reporting by Franklin Paul)