March 19 IBM and Sun International reported a potential marriage would be the best combination of a pair. According to informed sources, the two companies are currently negotiating, IBM is expected to a 6.5 billion U.S. dollars in cash to buy Sun.
IBM CEO Palmisano Sun acquired a variety of reasons: computer hardware business in the important position of IBM declining, while the Sun far beyond the scope of the hardware. In the past 20 years, Sun has become the most important one of Silicon Valley innovation, especially in the software. Eastern and Western innovation innovation giant Pioneer Sun IBM joint, will result in a strong market beach-goers.
Sun key innovations include the Java programming for the Internet computing voice, for powerful server computers Solaris operating system for server computers using AMD microprocessors cheap new technology. Sun, including telecommunications, the federal government and Web 2.0 companies, including several areas of the server market is very strong. Sun also has more than one million loyal enterprise software developers and 9,000 independent software developers.
Moreover, Sun is still brand. According to The Wall Street Journal reported, Sun also other major computer companies to improve their image. IBM is also good for this price, 6.5 billion U.S. dollars than the Sun 3 月 17 closing price of 100% premium to market value, but also will be IBM's largest acquisition ever. IBM has 130 million in cash, you can easily pay the cost of this acquisition. Representatives of IBM and Sun are not to comment on this report.
IBM shares fall
Wall Street analysts are not optimistic about the deal at first. UBS analyst Maynard - Umm that the presence server, the two companies a lot of overlap. March 18 beginning stocks, IBM fell 2.40 U.S. dollars on the share price to 90.53 U.S. dollars, down 2.5%; while Sun's share price rose 3.11 U.S. dollars to 8.08 U.S. dollars, or 62.58 percent.
If the two sides deal, IBM will increase in March of profits facing new challenges. On the IBM executives, many analysts and investors, the profit is the primary revenue growth is secondary. IBM recent filing shows the hardware sector pre-tax profit of 8%, less than 32% of software and services pre-tax profit of 12.4%. If IBM integrates Sun's product will hit its profits; and the success of this transaction to regulatory authorities also needed.
Sun may help IBM's transformation to enterprise computing to include cloud computing, the Internet delivery of products and services. IBM has been provided to the enterprise data center computers and services accounted for an absolute advantage, but as more and more companies in the Daxing their Xu Yao, efficient data center Chuli's Jisuanrenwu 完成 after by other companies, IBM Jiubu longer Kao rest on our laurels of the.
Sun on March 18 announced its own cloud computing strategy, the main advantages of integrated technologies, including Solaris, cheap servers, open source MySQL database. Sun Cloud Lu, vice president and chief technology officer - Tucker, said: "Every one computer makers will eventually have a cloud."
Advantage of Sun's cloud computing
In the world of cloud computing, powerful, low-cost technology will play a decisive role. Sun will help IBM in the data center. IBM in this area are encountering, HP, Dell and Cisco's fierce competition.
Despite the well-known Sun innovation, but marketing has not gained much success. IBM, through its large-scale service organizations and sales teams, technology integration services that will be said very much at home. In other words, IBM may be Sun's technology to market faster.
There is also a factor should not be underestimated. This may be IBM's move to defensive to the offensive. Sun three years of revenue growth does not appear, IBM and Microsoft in the fight has relied on Sun as an ally. Sun has a Java technology and support open computing standards, which will restrict the formation of Microsoft's Windows and Office monopolies. If the Sun weak, and Microsoft will be more powerful, which IBM is certainly not good news.
The deal may also be broken, Cisco and HP are likely to take advantage of infiltration. But the IBM-Sun deal will certainly trigger a major reshuffle technology industry.