Speaking to The Financial Express, Sun Microsystems India managing director Bhaskar Pramanik said that in the coming years the company expected the government to be a big source of business in India. For the purpose, Sun planned to take specific pilot projects with various state governments, said Pramanik.

The company has already taken up projects in some southern states and is presently in talks with the Madhya Pradesh government for pilot projects in e-governance, said Pramanik.

Sun Microsystems has a separate division called "Sun Federal" to look after business from the government sector. Pramanik said as the volume of business in the government sector in the country grew, the company would scale up its activities with the government sector.

Banking and the education sectors would be theother focus area of Sun in the coming years, Pramanik added.

As part of the company's `dot com' strategy, Sun Microsystems on Tuesday launched Sun Ray 1 enterprise appliance, a plug-and-work device which uses the Hot Desk model of computing for instant access. The appliance will be first offered to Sun's existing client base operating in the mainframe and Unix environment.