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Sun In Talks To Be Acquired By IBM

gandhi_2 writes "Sun Microsystems soared in European trading after a report that it was in talks to be acquired by IBM. The Wall Street Journal, quoting "people familiar with the matter," reported Wednesday that International Business Machines was in talks to buy the company for at least $6.5 billion in cash, a premium of more than 100 percent over the company's closing share price Tuesday. Officials of Sun and IBM could not immediately be reached for comment."

20 of 526 comments (clear)

  1. For $6.5b by sanosuke001 · · Score: 5, Insightful

    I'd sell in a heartbeat. In this economy, there's no guarantee anything will go well for a specific company. 100% markup on their stock? Even if they do make it through this downturn, no guarantee their stock will hit that level again anytime soon.

    Now, if only the US gov't will allow it. IBM+Sun would be a huge company.

    --
    -SaNo
    1. Re:For $6.5b by Reality+Master+101 · · Score: 5, Informative

      Now, if only the US gov't will allow it. IBM+Sun would be a huge company.

      IBM + SUN would be a huge company, but only slightly larger than IBM.

      IBM: Around 400,000 employees. Sun: 33,000 employees.

      IBM: $104 billion in revenue. Sun: $14 billion.

      IBM: $125 billion market cap. Sun: $3.7 billion

      --
      Sometimes it's best to just let stupid people be stupid.
    2. Re:For $6.5b by necro81 · · Score: 5, Informative

      Perhaps, but I think that IBM would be getting one hell of a sweet deal

      Although it is a 100% markup from Tuesday's closing price, that's still only a share price of $9 or $10. Barring the insanity of the dotcom bubble, when Sun was selling at $100-$200, it has been in the range of $12-$20 for the last 15 years. Between the dotcom bust and the global economic clusterf%#k, it had been solidly above $15. So, the way I see it, IBM is able to pick up a good company with solid products, a good long-term strategy, and an enormous IP portfolio for a 30%-40% discount.

    3. Re:For $6.5b by Anonymous Coward · · Score: 5, Informative

      Other comments in this thread are incorrect. Here is the truth:

      -- IBM still develops their JVM.
      -- The IBM JVM is currently at the 1.6 level (which you can find in WebSphere 6.2 products). Same spec level as the latest recommended version of the Sun JVM.
      -- IBM also develops their own implementation of the Java class libraries.
      -- Writing a fast JVM is not "a few months work". It took both Sun and IBM years of development to produce JVMs with reasonable performance. You can argue that the research supporting them (and around VMs in general) is now fairly well-known, but implementing it is still nontrivial.

      Thank you. Feel free to mod this up now, since I am apparently the only one who's gotten this correct.

    4. Re:For $6.5b by curunir · · Score: 5, Insightful

      Java is mainly a server-side technology these days. It's client side tech is floundering, both marketwise and developmentwise.

      This is a situation that could change if Sun were acquired. Sun has been pushing developers to use Swing on the client side and, while Swing may be popular with developers, users don't like it because of performance and the non-native feel. But IBM would likely push developers to use SWT instead. It's being used in a surprisingly large number of applications. That most people don't realize it's being used is a testament to both it's performance and it's ability to appear native (because most of the widgets are native with a Java API). SWT gets a bad rap because its poster-child application (Eclipse) can be a resource hog and run slowly in many situations, but from my experience that's not a failing of SWT and more a reflection of the complexity involved in writing and IDE and the design decision to make the IDE so heavily extensible by third parties. If IBM did acquire Sun, I would bet that one of the first changes made to Java would be to include SWT and JFace with the 1.8 JRE.

      Java's failings on the client side are, IMHO, a reflection of the lack of ubiquity of SWT and Sun's NIH syndrome when it comes to Java technologies produced outside of Sun's control. Those two barriers can be broken down if IBM acquires Sun.

      --
      "Don't blame me, I voted for Kodos!"
  2. Container? by MortenMW · · Score: 5, Funny

    So, can I finally get a 20' container with IBM servers in it?

  3. First Thoughts ... by Anonymous Coward · · Score: 5, Insightful

    are that this is probably the best that Sun can do but I have to say that the reduction in competition in that space would be concerning.

    I've been wondering for a while what Sun was going to do, let's be brutally frank, they were never going to get rich from Java or MySQL, especially as open source, but had little choice in keeping them closed source. I just hope IBM keeps Java, Open Office and the rest as they are and doesn't start to try to make money off them.

    1. Re:First Thoughts ... by Mark+Round · · Score: 5, Insightful

      "I just hope IBM keeps Java, Open Office and the rest as they are and doesn't start to try to make money off them.".

      While this is a valid concern (remember, Sun is by far the largest open source contributor out there), that'd be the least of my concerns. I'd be more worried if some software or hardware would even be continued.

      I can't see a merged company running duplicate lines of hardware OR software, and whichever way it goes, people are going to be pissed. Just look at the HP/Compaq train wreck, and that was relatively mild in comparison (Tru64/HP-UX etc.). With Sun and IBM, they've got to choose between either a massive duplication of effort, or pick one of Solaris/AIX, MySQL/DB2, SPARC/POWER, Galaxy/iSeries, Storagetek (including the ZFS-based products like Thumper/Amber Road)/IBM storage, Websphere/Glassfish, Netbeans/Eclipse - the list goes on.

      Both companies produce such an enormously varied range of hardware and software, I just don't see it working without some serious cuts and massively pissed off customers. Those Tru64 customers didn't all just take it on the chin and migrate over to HP-UX like the good customers they were supposed to be, for instance. If you were working in a x64 Solaris shop, and got told that your migration path was to AIX on POWER, would you move ? Or would you take your business elsewhere ?

    2. Re:First Thoughts ... by John+Bayko · · Score: 5, Insightful

      IBM has a long history of not only tolerating, but actively developing and promoting non-mainstream products. They still develop several operating systems (z/OS - from mainframe System/360 days, i5/OS - from AS/400, and System 38 and System 36 before that, AIX), and support others (Windows, Linux, Solaris), all to give customers no excuse for switching to a competitor. They support x86 servers, POWER based System p and System i (recently unified), mainframe System z. As well as blade versions of some.

      This is in sharp contrast to HP, which gleefully killed off good products (and customer satisfaction) for feeble marketing reasons (like a market strategist would even know the difference between an Alpha and Itanium).

      So there's a good chance that IBM would keep alive a lot of Sun hardware and software, only consolidating as needed. For example, System/36 and System/38 were merged into AS/400 smoothly enough to keep both sets of customers happy. And OS/2 was kept on life support for years just for those customers who had comitted to it, even if there was no new development for it. Maybe AIX and Solaris could be merged (AIX has a lot of partitioning magic and reliability tricks useful for IBM hardware that could be added to Solaris), the two companies' Java versions would do well with just one, and so on. But I doubt that Sun products would be wholesale slaughtered by IBM like some other companies might.

  4. Lotus Notes and Java... by Anonymous Coward · · Score: 5, Funny

    ...together at last!

  5. We're the dot in dot com by andy1307 · · Score: 5, Funny

    IBM.com that is...

  6. IBM is NOT more pro-Open Source than Sun by javacowboy · · Score: 5, Informative

    Come on!

    Sun has open sourced:

    NFS
    OpenOffice
    GlassFish
    Java
    Java Enterprise Edition
    Netbeans

    What has IBM open sourced? Oh...uh...Eclipse

    IBM has tons of closed source products:

    Websphere
    DB2
    Rational
    Lotus Notes
    etc.....

    Give me a break!

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    This space left intentionally blank.
  7. I question the future of Open Office, Netbeans,... by OTDR · · Score: 5, Insightful

    I genuinely question the future of Open Office, Netbeans, Java, et al if IBM acquires Sun. I'm not implying there will be a malicious or concerted effort to kill any particular product or anything, it's just IBM. Long before there was a Linux community I was a die-hard OS/2 user (the best single-user OS there ever was) and before that worked years for an IBM dealer. IBM was, is, and always will be a company of brilliant engineers that can't market water in a desert. Continually-shifting reprioritizations, undercutting of third-party support, you name it -- they kill their own products by their own sheer idiocy.

  8. Noooooooo!!!!!!!! by S77IM · · Score: 5, Funny

    OK, I've got no special love for Sun, but please God please, do not let them get swallowed up by the IBM bureaucracy.

    "New in Java 8! XML-binding database security extension protocol modules for WebSphere integrated at every level of the language, providing automatic clustering, fail-over and performance profiling! To support this feature, a critical part of many customer solutions, writing a Java class will now require an additional 37 configuration files, and if you make a mistake in any one of them, a cryptic error will be thrown at run-time. For security reasons, we can't tell you what the error codes mean. Also, half of java.* and javax.* no longer work according to the specification and javadoc, and XML will now be stored in binary. IBM consultants are available to help you with the transition."

      -- 77IM

    --
    Student: Is it true that the foundation of the universe is paradox?
    Master: Well, yes and no.
  9. Re:This could be Schwartz' greatest trick ever. by guruevi · · Score: 5, Insightful

    The decline of the overpriced server market started with the availability of cheap commodity (desktop) hardware being used for server-grade systems. People don't always need 100% uptime (as Windows is a great example that people don't even think about it) and they aren't willing to pay extra to squeeze every ounce of performance and reliability out of those machines. Those people are willing to live with a few hours per month of downtime or they just invest in a failover server. The Sun's (as well as SGI and DEC machines) are very 'expensive' but they won't fail as fast nor will the failure be as disastrous (eg. RAID controllers taking a whole array of data with them).

    I have had experience you can say with every type of hardware out there. It's not unusual to see a Sun Workstation or Sun Server (where I currently work we still have a few Ultra's chugging) that have been purchased in the 90's. Even their hard drives haven't failed yet and have layers of dusts because people either forget about it or are afraid to touch it. However I have never seen a Dell that was more than 5 years old that either hasn't been replaced yet or had some major (hardware) problems with it. The same goes for hardware with PowerPC processors, those things keep living even after they've been off the market for years and the performance of an Apple with a quad core G5 is almost similar to the previous Mac Pro's (with Xeon processors) on most loads. Just now are the Xeon's (either the Nehalem architecture or the higher frequency versions of the previous) passing the G5's on such a level that you actually notice.

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  10. IBM kicks back a lot more code than you think by Anonymous Coward · · Score: 5, Insightful

    Google "Linux Technology Center" or "IBM Internal Open Source Bazaar" and be educated. IBM just hasn't taken sides in the distro war. Instead of putting distros out there, IBM is kicking a lot of money and code into the Linux kernel and a lot of the core software that makes up your favorite distributions.

    IBM probably contributes more code back to the FOSS community than Novell, potentially more than Red Hat.

    Quite a few of the "who's who" of the FOSS world work at IBM writing the code that you're now using.

  11. Re:A boon to open source by TheRaven64 · · Score: 5, Insightful

    Reality is that the CDDL has restrictions on derivative works that are very similar to the GPL restrictions

    Not true. The CDDL and GPL both have restrictions on derived works, but that's not the problem. The GPL also has restrictions on things that are not derived works and happen only through linkage. If the kernel had been LGPL'd, then the CDDL would not be a problem. You can link CDDL'd code with code under any other license without the CDDL causing issues. Apple links CDDL'd ZFS code against APSL'd XNU code, for example. Neither the CDDL nor the APSL is GPL-compatible, but in both cases it is due to the GPL containing clauses which cover more than the code that was originally GPL'd.

    The fact that OS X and FreeBSD, with very different but not copyleft, licenses can both use DTrace and ZFS shows that it is the GPL, not the CDDL which is the problem. The GPL is the license which imposes restrictions on code linked against it. The CDDL imposes conditions in the CDDL'd code itself, but has no problems being linked against code under any other license, unless the other license objects.

    --
    I am TheRaven on Soylent News
  12. Re:A boon to open source by mzs · · Score: 5, Informative

    That is the opinion of Danese Cooper. See this for the opinion of one of the engineers:

    http://www.opensolaris.org/jive/message.jspa?messageID=55013#55008

    I worked down the hall from an engineer very much involved in the whole open sourcing of Solaris at the time. The people that knew about this back then would agree that he was the principle engineer working on this, so much so that he had hardly any time for putbacks, so I got to see a lot of what was happening.

    I really can't think of any engineer on that floor or the one below nor anyone I knew from England or LA that was opposed to the GPL because they did not want their work released under that license. That is the view that Danese expressed, and I believe she was incorrect. In fact she sullied the reputation of the whole lot of us when she made that talk and upset me and other people I am sure. Rather there were a portion of the engineers that felt that releasing under the GPL would be bad for Sun since Linux could take parts of Solaris and then destroy Sun. In any case it was not the engineers that made the decisions about the CDDL and not for those reasons (Sun could do whatever it wanted with the code its employees wrote), rather it was a committee with involvement from many other groups as well including many lawyers and most of everyone VP level and up with roots in the ON tree.

    I knew about Danese when there and she came across as a zealot. She lost the argument for GPL and since then has behaved like a diva about that. Cooler heads prevailed. There were practical reasons that the GPL or LGPL was not appropriate and GPLv3 would not be ready for years. One big reason was the patent clusterf*ck and the other was that people at Sun wanted anyone else to be able to use open source solaris code in any way they liked as long as it was open source as well. That created the CDDL which was a file based license. It allowed you to mix in whatever other files you wanted and just those files that were CDDL to begin with remained so. There was no is it linked, statically linked, how much of the .h files are used, do you needed anything under a different license to build it, etc. That is the real reason that the CDDL was created. It is not the fault of Sun and certainly not the fine engineers that the GPL is incompatible with that.

    Sure some people that were afraid of Sun collapsing if Linux could just take the good parts of Solaris wholesale and were worried about the future of the company because of that breathed a sigh of relief, but it was not because of them or that worry that the CDDL was created. The fact remains that if people high enough were not convinced that open souring at all was a risk to Sun's future, there would be no open solaris period.

    That is my opinion and point of view of what took place. An official explanation of the CDDL is here:

    http://www.opensolaris.org/os/about/faq/licensing_faq/

    It goes into details about the whys of CDDL and the why nots of other licenses. It is a fair explanation. So the point to take home is that there are those that think being incompatible with the GPL was the prime reason for the CDDL, other people think that is not the case and there were other prime reasons. The people that make the anti GPL argument are all big GPL proponents though. Also truthfully there were some people relieved when open solaris was not under the GPL, but for the simple reason that they were worried about the future of the company, not that they did not want the work that they had done released under the GPL. SUNW (back then) had gone from $110+ to less than $30 per share in that period afterall, people were twitchy. I can tell you that it was a great feeling personally when I knew other people could see and use the code that I had written.

  13. IBM and Microsoft: symbiotic relationship by Gary+W.+Longsine · · Score: 5, Interesting

    It seems to be "common geek knowledge" that IBM has this unified corporate animosity to Microsoft -- often blamed on fallout from their split during the OS/2, Windows NT days. This is a seriously naive impression of IBM. It's a giant corporation with entire business units (some probably bigger than Sun) which make enormous sums of money by introducing complexity into the customer environment, and up-selling integration services to "manage" that complexity.

    IBM LOVES LOVES LOVES the fact that Windows is a font of unnecessary complexity.

    IBM exists as a giant IT behemoth today, precisely because Windows sucks, and they know it. They will do nothing to jeopardize the Windows cash cow.

    Even back in that brief window of time when OS/2 could be perceived as a viable alternative, IBM was busily rolling out their internal Windows-based desktop systems infrastructure, in most cases replacing an X-Term infrastructure. OS/2 never even had a chance in the real world, even though it had strong proponents for many years, they were all outside of IBM. Inside of IBM, OS/2 was relegated to a POS terminal system, then trimmed back to an ATM system when the POS systems went Windows.

    As recently as a few years ago, when IBM senior managers were betting big on Linux, and bragging publicly about investing a billion dollars a year (and probably more these days) on Linux, IBM customers couldn't even get IBM to submit proposals based on Linux for simple tasks for which Linux was very well suited. IBM instead proposed convoluted, unstable Windows-based "solutions" which cost more. Customers could BEG IBM for Linux based solutions and not get them. IBM actively fought against efforts at their customers to actually use Linux.

    --
    If you mod me down, I shall become more powerful than you could possibly imagine.
  14. SUN stands for. . . . by jafac · · Score: 5, Insightful

    Stanford University Network.

    I think most people are lacking the historical perspective to understand the broader symbolic meaning of this buyout.

    SUN represents everything about computer evolution, the computer is the network, Silicon Valley enterpreneurship, crusty - bearded old Unix guys, hacker culture, West Coast Innovation, etc.

    IBM represents New York, East Coast, old-school business mentality, mainframes, closed-source, proprietary, white-shirt-and-tie cubicle-dwelling programmers.

    It's the end of the Net as we know it.

    If you look at the "1984" Apple Commercial: Big Brother just won.

    --

    These are my friends, See how they glisten. See this one shine, how he smiles in the light.