Uncommon Wisdom

Mar 18 2009   4:16PM GMT

IBM to acquire Sun? Benefits for the cloud

Tom Nolle Tom Nolle Profile: Tom Nolle

IBM is said to be in talks with Sun on acquiring the company, which has been troubled since the NASDAQ bubble burst. The move would give IBM a commanding position in the server/hosting space for the Internet and a strong position in telecom. A move would very likely create considerable angst for Cisco, which now faces a broader blade server collision with the industry’s most formidable tech giant.

We believe the move would be good for both companies. We also believe it is an indicator that IBM sees the transformation taking place in what’s called “cloud computing,” the creation of a new relationship between network and IT resources for both network operators and enterprises. Sun’s credentials are strongest in the network space, but it also has considerable cloud talent and its own cloud computing offering.

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