McNealy out as Sun CEO

McNealy, 51, will continue to serve as chairman of Sun's board of directors and will remain a full-time employee.

Schwartz, 40, moves up from his previous positions as president and chief operating officer of Sun (Santa Clara, Calif.).

The company said in a statement that the appointment of Schwartz "is the result of Sun's ongoing succession planning process and is effective immediately."

Under McNealy, Sun has struggled in recent years, steadily losing market share to competitors despite the success of its Java technology.

Schwartz joined Sun in 1996 when it acquired Lighthouse Design, Ltd., where Schwartz served as CEO. He was named Sun's president and chief operating officer in April 2004, and has been responsible for Sun's product development, sales, marketing and operations.