IBM to buy Sun?

According to this morning’s WSJ article IBM is considering to acquire Sun for $6.5B.  To some people this will make sense and to others this is of little value. I think the benefit is more for Sun. IBM would gain Sun’s customer base plus $3B in cash reserve. But it will also face some product overlaps such as MySQL vs. EnterpriseDB. Sun Solaris proprietary systems will need to be migrated over to Linux.

Sun has been looking for a suitor for last few weeks. It continues to flounder in the market. The mighty “dot” in the dot-com business, or the creator of the slogan “network is the computer” has seen its glory days. It is a great company that starts good stuff, but somehow unable to monetize  them. Java started there, but IBM has more Java developers than Sun. Sun has been struggling to find its DNA and lately it has been focusing on being an open source (monetization?) company. Its acquisition of MySQL for a billion dollars has not resulted on any significant market leadership. It might have alienated older partners such as Oracle.

So what will IBM gain, other than reducing the “server” competitors by one? Let us see how it turns out.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s