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Available To The Right Buyer: Sun Microsystems
antediluvian writes "The Seattle Times reports Sun Microsystems shares surged forward on speculation the computer maker may be bought by a rival company. Prospective buyers could include Dell, IBM or Hewlett-Packard. Computer sales of rival companies have been outpacing sales of Sun's machines. Over the past three years Sun's stock has declined 92 percent."
I am surprised no one mentioned EDS. HP and Dell both want very badly to become like the current IBM, who makes a ton of money on both hardware, OS, and services integeration. I think that should discount HP, Dell and IBM because the merger doesn't bring alot of new things to merged company.
EDS however was the top services company until IBM decided to go into high end consulting and services business. So... it seems an EDS / Sun merger would put them both back in IBM's league. A customer could chose IBM / zOS / db2 / mainframe for a big account or EDS / solaris / oracle / sunfire at a discout.
It also would be interesting since EDS reportedly uses big Sun servers all over the world...
just my $0.02.
HP would not even bother about Sun right now because it does not want to bite off more than it can chew. Investors would not at all take kindly to the acquistion of Sun by HP. HP right now is trying to fend off the dog that is Dell. HP does have about 13.2 billion $ in hand (Biz Journals) but it will probably not want to mess with it right now.
Removing Sun from the competition would help the server market by bringing some consolidation.
What will IBM do with the Sparc chips? It is not likely to dump it for a while but after 2-3 years it may just move to Itanium and its own PowerPc chips.
Sun has already brought in x86 systems in the lower end. Both Sun and IBM are adopting AMD's Opteron for lower and mid level systems.
We have also got to remember the FTC. If IBM does bid for Sun then expect them to go through a tough scrutiny so as to avoid a monopoly status in the high end server industry.
People know that Sun is able to keep customers only by chanting the reliability and customer satisfaction song. Its Ultra Sparc's are falling behind in performance and it is probably only with the Sparc V's that it can gain any semblance of competitiveness. And when are the Sparc V's going to come out? 2005 at the earliest.( News)
Would Dell bid for Sun? Dell certainly can because it does have quite a bit of cash sitting around 9.1 billion $ as of Dec 2002 (Motley Fool and Yahoo ).
What is Sun's market capitalisation? As of March 19, it was about 10.73 billion $.
Dell does not have a foothold in the high end server market because it does not spend much of R & D as opposed to HP, IBM and Sun. Acquistion of Sun could be a easy way to compete with HP and IBM. Dell's entry could help reduce the prices of high end servers like Dell has done to the desktop market.
If this story is indeed true then it would be the most talked about merger. Competition for customers paying money for big tin has only gotten worse after the tech meltdown.
Personally I feel that the Sun bid is just a rumor like the Universal/Apple deal. If anyone is to believe it, then Sun or whoever is buying them have to publicly state that they are looking into this deal. Maybe the coming weeks will tell us more.
Java will not be disappearing any time soon. Too many big name companies (most notably IBM and Oracle) have invested too much money in Java for them to let that happen. Also, with the way that Java is developed, through the Java Community Process, any potential buyer would find it difficult to exert full control over the the technology. For a closed product, Java is pretty open.
IBM would be the most obvious candidate as Java and particularly open-source Java offerings (such as the Jikes compiler and Eclipse IDE) are a big part of their software activities. They develop their own IDEs and app-servers and ship JVMs for several platforms that have routinely out-performed Sun's equivalent offerings.
It would also be interesting to see how the SWT vs Swing issue would work out if IBM were to become Java's new guardians. Swing is the Sun graphics toolkit for Java and is the standard for client-side Java. It's fully platform independent and uses pluggable look-and-feels with lightweight components to emulate the look and feel of the native platform. SWT is IBM's alternative that is used in the Eclipse IDE. It's not quite so portable as it provides an abstraction on top of the native windowing system but it has advantages in terms of performance and closer integration with the underlying system. It breaks the write-once-run-anywhere philosophy but is growing in popularity.
Oracle could be another contender, they too use a lot of Java, particularly for their client-side tools (which it has to be said weren't very good last time I used them) and they partner with Sun on the database/hardware front.
Apple could be a dark horse, they have a vested interest in Java. In a world where the desktop is dominate by Microsoft, the availability of Java software is a good thing for them as it means there will always be software that runs on Macs. They have put a lot of effort into supporting Java in MacOS X and gone further than other operating systems to help Java applications fit in with the look and feel of the platform.
A lot of people don't realise just how much Java coding is going on out there, because most of it is hidden away on the server side. This site claims that Java is the world's most popular programming language by some distance (though you may argue about the accuracy of their method of measuring these things). I also read elsewhere (can't find a link) that there are more lines of Java being written these days than any other language.
Suck figs.
Please no! They might win the auction.
Apple are in prime spot to displace Sun these days. They are the only UNIX vendor committed to a proprietary UNIX that is likely to still be on offer in ten years time. IBM has already all but said it has thrown in with Linux. HPUX, Digital Unix, Irix etc are already niche market plays.
I don't think solaris can survive, simply too few seats to be viable except as a niche. It is bound to a single hardware platform which is itself starting to look old and tired with not much hope of fending of Pentium long term, let alone Itanium.
Apple on the other hand have a really strong desktop business by any measure but Microsoft. They have probably shiped more UNIX systems by now than any other vendor, their kit is robust and mature. Sorry Sun, you never did crack the quality manufacturing thing the way DEC did. So now you charge DEC prices for FIAT reliability.
The other major problem Sun has is Scott. Unless he is gone by the end of the year Sun is dead. Scott has been spending his time on futile rants about Microsoft who don't even make hardware - his core market while Linux, IBM and now HP eat his lunch.
I was eating with a senior exec of a major (F100) company who used to be a Sun shop. Scott had gone out to talk to them and his answer to everything was about stopping Microsoft. So the company concluded that they better switch from Sun quick. I then heard the exact same story a couple days later from another F100 company exec.
The single best thing Jobs did at Apple was bury the animosity with Microsoft. He told Apple that they were going to be something so different from anyone else that what happened at Redmond did not matter. He was right, he realised that the 'Network Computer' that had been developed would flop in that market but had the potential to be a killer entry price machine with a few cosmetic tweaks - and the iMac was born.
Sorry Scott, but now it is you or the company.
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