Reading InsideGoogle, I found a Tom Foremski interview with Sun's John Loiacono, who suggests that Google would consider outsourcing it's computing infrastructure.
Ha! Someone is high here. Either Loiacono is trying to make news and is talking out of class, or the people at Google who think this is good are not in tune with everything Google-y.
As I've written before: Larry and Sergey are the kings of rolling their own. You'll know Google is in trouble when they buy off the shelf. Furthermore, Sun is just not relevant to Google, despite Schmidt connection. I'd short Google if I found out that they were serious about this, but I think it's just noise.