Archive for March 19th, 2009

With IBM reportedly in talks to buy Sun Microsystems, industry experts say the two tech giants — both of which earned early fortunes by selling expensive hardware — are looking to a future based on a much broader range of computing gear, software and tech services.

“It’s about the whole data center,” said Chris Foster, a veteran analyst at Technology Business Research, noting that a deal would give IBM control over Sun’s cornerstone Java programming language and other valuable software, as well as access to hardware customers and highly profitable contracts for consulting and other services.

Both companies declined to comment Wednesday on reports that IBM is negotiating a possible $6.5 billion purchase of Sun — a deal that would shake up the global tech industry and spell the demise of a venerable but now-struggling Silicon Valley pioneer. After its founding in 1982, Sun built a hugely successful business selling powerful computer workstations and later the servers behind much of the first Internet boom.

News of the talks first surfaced Wednesday in The Wall Street Journal, which cited unnamed sources familiar with the discussions. While those sources said a deal could be struck this week, analysts said it is by no means certain, and even suggested Sun might entertain offers from other suitors.

Read the full article from siliconvalley.com here.

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