You must connect serial and network cables to both SPs.
On the SPARC M8-8 and SPARC M7-8 servers, the two SPs are located at the top of the server. See SPARC M8-8 and SPARC M7-8 Server Rear Components (Installation).
On a SPARC M7-16 server, the two SPs are located at the top of the switch chassis. See SPARC M7-16 Server Rear Components (Installation).
Connecting each serial cable to different terminal devices provides redundancy in case one terminal device fails.
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To achieve 1-GbE network speeds, use Category 6 (or better) cables and network devices that support 1000BASE-T networks. These 10/100/1000 Mbps NET MGT ports will autonegotiate to the speed of your network.