Wednesday, March 18, 2009

Does IBM Have Sun Stroke?

The rumored IBM purchase of Sun for $7 billion dollars will likely turn out to be a blunder.  while, Sun does have some compelling technology and a large customer base,    they are a dying franchise. why not just offer Sun customers a compelling trade-in offer and hire away some of their smartest people?

Right now enterprise customers want more cloud technologies they can purchase as a service. Capex bad, opex good. Why wouldn’t IBM invest the $7 billion in creating the services and products of the future rather than lapping up the past?



2 comments:

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  2. it is precisely the technology and customer base IBM is after. the technology will bolster IBM's position and enable it to offer unparalleled services and products for the cloud opportunities and have IBM way ahead of the competition. The purchase will also keep the large customer base comfortable and engaged with IBM. In the long run, it actually may be cheaper than directly going after Sun's entire customer base. It also avoids potential lawsuits from being filed if IBM steals away Sun's engineering talent. Remember what happened with Microsoft and Apple?

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