In an effort to jump on the virtualization bandwagon that was kicked into overdrive by the VMWare (VMW) initial public offering, Sun Microsystems and Microsoft have announced a partnership to work on server and virtualization technology. As part of this partnership, Sun will become an original-equipment manufacturer of Microsoft's Windows Server operating system and offer the OS on its x64-based servers. Additionally, the two companies will collaborate on virtualization technologies that will run on both Sun and Microsoft software platforms.

Shares of MSFT seem particularly un-phased by the deal, and were last seen higher by less than half-a-percent. JAVA, meanwhile, spiked early in the session, but was rejected by overhead resistance in the 6 area. The shares were last seen lower by nearly half-a-percent. Surprisingly, sentiment among options players remains heavily bearish toward both companies. MSFT's Schaeffer's put/call open interest ratio (SOIR) of 0.61 ranks above 90% of all those taken during the past year, while JAVA's SOIR of 0.61 ranks above 95% of the same time frame.

Still, both stocks seem to have benefited from the positive attention the tech sector has received lately. JAVA enjoys the support of its 10-day and 20-day moving averages, having not closed a session below both since August 15, while MSFT recently broke out above short-term resistance at the 29 level.