Virtual Iron

Conglomeration conga

Whether Sun and IBM ever actually do tie the knot, the M&A craziness will continue.  It’s interesting to parse reactions to this possible deal. For IT shops, there’s angst because some Sun partisans hate IBM and people with religious devotion to IBM won’t touch Sun. If those two data center giants converge, the fear is less competition and higher prices.

VARs are acutely interested in this because a vendor they may have been selling against may soon magically morph into their vendor.  This raises interesting channel conflict issues. Despite its well-documented troubles, Sun has gotten good reviews for its channel management by a handful of its elite partners. They’re not eager to be thrown into the IBM pot.

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