Posts Tagged Sun
One more thought on IBM Sun
Posted by David Vellante in Wikibon on March 19th, 2009
After a not so great night’s sleep I awoke thinking about one more aspect of this possible deal that I haven’t seen discussed. Here’s a quick update to yesterday’s post on this topic.
In the 1980’s, my boss at IDC, turned author, David Moschella introduced what he called the “Theory of Dis-integration.” Today it looks trivial but making this call in 1987 was pretty forward thinking. What the Theory of Dis-integration said is that the next decade of IT competition would be shaped by a powerful trend, spawned by the economics of the microprocessor and IBM’s decision to outsource its PC chip and OS from Intel and Microsoft respectively. It called for the end of vertical integration in the IT business replaced by a segmented competitive structure.
Today’s hot M&A rumor – IBM to aquire SUN for $6.5B!
According to the Wall Street Journal IBM is in talks to buy Sun Microsystems Inc for at least $6.5 billion. That price tag would translate into a premium of about 100 percent over Sun’s NASDAQ closing price Tuesday of $4.97.
WSJ displayed a masterful ability to hedge their bet by saying that a deal with IBM could happen as early as this week – or fall apart! They also noted that if IBM does buy Sun, it would be the company’s largest acquisition since it bought Canadian software maker Cognos for about $5 billion in January 2008.
IBM to Buy Sun?
Posted by David Vellante in Wikibon on March 18th, 2009
We’re very busy ramping Wikibon right now but I was told all day I needed to blog about this. So I took a few minutes to do some quick reading and some thinking. Then I read the post from Chuck Hollis over at EMC who nailed it.
I’ll summarize what he said and add a few of my own thoughts.
- This was inevitable - Sun is not a stable bet for CIO’s and IBM’s a better fit than HP;
- IBM definitely covets the Solaris installed base especially in telcos and Internet businessess;
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