Sun On The Offensive To Win Defense Pacts; No Big Jump After 9-11; Server company points to more opportunities with U.S., local agencies.(INTERNET & TECHNOLOGY)(Q & A)

Byline: KEN SPENCER BROWN

Contrary to popular belief, 9-11 did not lead to a flood of government tech spending.

At least not for Sun Microsystems. Sun is one of the biggest sellers of computer systems used by the U.S. Defense Department and other government agencies, but it's seen sales slump in recent years.

Last year the company put longtime executive Clark Masters in charge of its public sector division. His mission: revive the business.

It won't be easy.

The federal government may be investing in technology in its ongoing efforts to fight terrorism and modernize health care. But state and local governments are suffering budget shortfalls. That makes them loath to spend too much more on technology.

Masters recently spoke to Investor's Business Daily about the challenges and prospects of technology in the public sector.

IBD: Where does government use information technology …