Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
MCNEALY SCOTT G
  2. Issuer Name and Ticker or Trading Symbol
SUN MICROSYSTEMS, INC. [SUNW]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
4150 NETWORK CIRCLE
3. Date of Earliest Transaction (Month/Day/Year)
07/31/2007
(Street)

SANTA CLARA, CA 95054
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 07/31/2007   M(14)   87,500 A $ 5.1 912,698 (1) D  
Common Stock 08/01/2007   S(12)   37,500 D $ 5.06 875,198 (1) D  
Common Stock 08/01/2007   S(12)   50,000 D $ 5.07 825,198 (1) D  
Common Stock               268,080 I Shares held by trust. (2)
Common Stock               55,936,480 I Shares held by trust. (2)
Common Stock               402,800 I Shares held by trust. (2)
Common Stock               7,551 I See footnotes. (3) (4)
Common Stock               7,551 I See footnotes. (3) (4)
Common Stock               7,551 I See footnotes. (3) (4)
Common Stock               7,551 I See footnotes. (3) (4)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (Right to Buy) (5) $ 5.4532               (6) 06/17/2008 Common Stock 3,200,000   3,200,000 D  
Employee Stock Option (Right to Buy) (5) $ 12.5313               (6) 04/20/2009 Common Stock 400,000   400,000 D  
Employee Stock Option (Right to Buy) (5) $ 40               (6) 04/12/2010 Common Stock 1,000,000   1,000,000 D  
Employee Stock Option (Right to Buy) (5) $ 18.58               (6) 04/18/2011 Common Stock 1,500,000   1,500,000 D  
Employee Stock Option (Right to Buy) (5) $ 12.59               (6) 11/07/2011 Common Stock 1,250,000   1,250,000 D  
Employee Stock Option (Right to Buy) (5) $ 12.59               (6) 11/07/2011 Common Stock 1,250,000   1,250,000 D  
Employee Stock Option (Right to Buy) (5) $ 9.14               (6) 03/19/2012 Common Stock 200   200 D  
Employee Stock Option (Right to Buy) (5) $ 6.45               (6) 05/02/2012 Common Stock 200,000   200,000 D  
Employee Stock Option (Right to Buy) (5) $ 7.07               (6) 05/14/2012 Common Stock 800,000   800,000 D  
Employee Stock Option (Right to Buy) (5) $ 3.7               (7) 07/25/2012 Common Stock 1,000,000   1,000,000 D  
Employee Stock Option (Right to Buy) (5) $ 3.85               (8) 07/23/2013 Common Stock 1,500,000   1,500,000 D  
Employee Stock Option (Right to Buy) (5) $ 3.79               (9) 07/29/2014 Common Stock 1,250,000   1,250,000 D  
Employee Stock Option (Right to Buy) (5) $ 3.85               (10) 07/28/2015 Common Stock 900,000   900,000 D  
Employee Stock Option (Right to Buy) (5) $ 4.95               (11) 04/27/2016 Common Stock 2,100,000   2,100,000 D  
Employee Stock Option (Right to Buy) (5) $ 5.1 07/31/2007   A   2,000,000     (13) 07/31/2017 Common Stock 2,000,000 $ 0 2,000,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MCNEALY SCOTT G
4150 NETWORK CIRCLE
SANTA CLARA, CA 95054
  X      

Signatures

 /s/ Scott G. McNealy   08/01/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) This includes 150,000 shares of unvested restricted stock.
(2) The reporting person disclaims beneficial ownership of these securities, and the filing of this report is not an admission that the reporting person is the beneficial owner of these securities for the purposes of Section 16 or any other purpose.
(3) Gift from reporting person's mother.
(4) These shares are held in a California Uniform Transfer to Minors Act account for the benefit of the reporting person's child. The reporting person's spouse is custodian of the account. The reporting person disclaims beneficial ownership of these securities, and the filing of this report is not an admission that the reporting person is the beneficial owner of these securities for the purposes of Section 16 or any other purpose.
(5) This option was granted under the Sun Microsystems, Inc. 1990 Long-Term Equity Incentive Plan.
(6) Immediately.
(7) This option vests and becomes exercisable in five equal annual installments of 200,000 shares beginning on July 25, 2003.
(8) This option vests and becomes exercisable in five equal annual installments of 300,000 shares beginning on July 23, 2004.
(9) This option vests and becomes exercisable in five equal annual installments of 250,000 shares beginning on July 29, 2005.
(10) This option vests and becomes exercisable in five equal annual installments of 180,000 shares beginning on July 28, 2006.
(11) This option vests and becomes exercisable in five equal annual installments of 420,000 shares beginning on April 27, 2007.
(12) The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on August 7, 2006.
(13) This option vests and becomes exercisable in five equal annual installments of 400,000 shares beginning on July 31, 2008.
(14) Represents performance-based restricted stock units that have vested and are paid out in shares of common stock.

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