IBM Withdraws $7B Offer For Sun Microsystems, Says NYT
suraj.sun points to a story in the New York Times indicating that the much-rumored merger (or purchase) that would have united Sun with IBM may have dissolved before it began. Excerpting: "I.B.M., after months of negotiations, withdrew its $7 billion bid for Sun Microsystems on Sunday, one day after Sun's board balked at a slightly reduced offer, according to a person close to the talks. The deal's collapse raises questions about Sun's next step, since the I.B.M. offer was far above the value of the Silicon Valley company's shares when news of the I.B.M. offer first surfaced last month. .. Since last year, Sun executives had been meeting with potential buyers. I.B.M. stepped up, seeing an opportunity to add to its large software business, acquire valuable researchers and consolidate the market for larger, so-called server computers that corporations use in their data centers. ... Now, Sun is free to pursue other suitors, including I.B.M. rivals like Hewlett-Packard and Cisco Systems. Cisco recently entered the market for server computers."
Is that internet slang for "much-rumured merger?"
Who edits the editors?
I was looking forward to the merger, actually.
I hate to think about it, but a Cisco Sun merger might make sense. At least at first glance.
Think Deeply.
Sun seems to want to hold on for a better bid than IBM's $7 billion, but there's seems to be a hard time justifying much higher of a markup beyond the $6.3 billion it has in market cap. Who wants to bid more?
I saw this a few years ago and it made me true to my moniker: http://www.dslreports.com/forum/r19080808-Ars-technica-on-Sun-strategy-over-the-years. Looks like we have an edit to make to this spot-on, funny-but-sad pie chart.
The more you regulate a company, the worse its products become.
Does this mean that Netbeans is still alive?
nemesis. Home of an experimental fe code.
Did somebody write that all by themselves or did they use an automatic speech generator?
Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
If Apple bought Sun, then they would be a very interesting Server-Desktop combo.
RFC2119
Sun has now made my list of the stupidest companies on the planet. This is the same stupidity that happened when Yahoo rejected Googles buyout offer. Message to CEO's: When you have someone offering you much more then your companies worth...you take it run and never look back. Especially with the bad economy.
"The difference between genius and stupidity is that genius has it's limits" - Albert Einstein
... after all, why not? They know how to make a profit.
And I would immediately switch to MS .NET after 10 years with Java!
I mean, if there is a company as secretive about their plans as Apple, it's probably some kind of governmental intelligence agency.
At least, with MS we know that we are not going to get what they say, but we know that... Apple is a total enigma.
A Microsoft acquisition would be interesting.
t
Classic April Fools, IBM!
Thank you, Edward Snowden.
"Arguments from authority are worthless." —Carl Sagan
...It's all right.
There were rumors of a similar acquisition but the other way around -- Sun was looking at buying Apple -- a decade ago. This was 'round the time McNealy had said something like "Apple's best hope is to become the world's best Java thin client manufacturer."
How do you like them Apples, Scott? :)
An Apple-Sun merger really doesn't make a lot of sense. They do really different things. Schwartz's time in the NeXTStep development world, though, makes me think it's not completely impossible...
Tweet, tweet.
in my country (the US), we have a saying -- "why buy the cow when you can have the milk for free?". This usually is a reference to pussy, but it also works with Open Source. A lot of Sun's goodies are available under an open source license (CDDL or GPL). Virtual Box, Open Solaris, MySQL, Open Office, Java, hell even SPARC chip designs. IBM can hire brown skin developers to work on Sun's code for less than the cost of purchasing Sun. Hell, they've been working on an OpenOffice fork for a couple years now.
Do you even lift?
These aren't the 'roids you're looking for.
Did someone at Sun pulled off a Steve Jobs by tossing the IBM contract into the trash can?
N.Y.T.: Most. Stodgy. Grammatical. Style.
They are all good, Solaris and OpenSolaris are very interesting, especially with ZFS and zones. It's pointless to pit them against each other.
In yet another stunning up-setl UNIX Stanford Network Systems faced down their archrival opponent International Business Machines in the Final Four UNIX match.
With IBM "flat-lining" Solaris, MySQL, SPARC and other production lines of SUN, SUN countered with a back-board slam fest from of "all walks of life" -- JAVA.
Point forward of JAVA, Groshlong, commanded the JAVA troups and ... they dillevered threes in an unending toruent ... even from three-quartes of the court out. What a show! What defiance!
IBM never saw this coming! Completely blind they were! What a plan! How effeicent. So economical!
Reports tell that CEO Schwarts will be nominated Coach of the Year. A fine tribute!
Reporting from the Final Four.
Here is a link to the Bloomberg news article. No registration or subscription required.
"The quality of life is determined by its activites."--Aristotle
Solaris is(NT) more stable, on Intel it is junky, BUT the point is this type of comment is so DEC, 15 years ago, but SUN was the descendent of DEC, and much the same arrogance is there.
The sad thing is they died some time ago, and the world is just noticing.
Now we get to sit back and watch Sun slowly die and your precious precious ZFS/NetBeans/etc die of stagnation.
If true.
And I say that for three very important reasons:
a) IBM was sure to 'consolidate' a great number of things. And I'm sure any remnants of Sun left after this process would have been IBM-ized. And I do say that with a great deal of negative connotation. IBM has a habit of having some great tech, but in many cases doing very dumb things to it to make it annoying to work with. (Exhibit #1 = AIX boxen)
b) Our choices for 'iron' and 'OS' variety in the IT space would have been reduced as I'm sure overalpping server lines would disappear, as well as perhaps an OS (AIX vs. Solaris). Some variety in the I.T. space is most definitely to our advantage as I.T. folks. Of course, pricing competition between rivals is always a good thing, too.
c) Lastly, the most important thing, is that we'd have lost one of the most innovative enterprise I.T. companies ever. Say what you will about their ability to turn it into large $$$, but Sun has come up with some of the most innovative ideas the server-related I.T industry has seen since their inception....and they continue to do so. I think many people lose sight of this as they like to whine about Sun simply because they're a big corporation.
Sun has tons of innovation, a quality pool of software, hardware engineers and community, their servers are really good quality and their move to the storage segment with ZFS is definitely very interesting. Storage might be where they can turn around, they have everything ready to make a splash there. Storage on x86 commodity hardware, including SSD, with 10 GBe, OpenSolaris, ZFS and COMSTAR.
yes Virginia, Solaris is more stable than Linux. Yip, solaris is stable alright. So is a concrete block. Which is about as usable as a solaris box. Sigh! I have used many suns and many linux boxen.... and I always heave a sigh of relief when I can get back to linux. All the tools I need are instantly available under Linux and installed right.
What are the chances that IBM will try a hostile takeover instead?
Are rher more things to consider to that than the likelihood that they could get 51% of Sun shareholders to be willing to accept a near 100% mark up from pre-purchase rumor price?
Cause if that's all that it takes, in this market I think it would be easy to find that many people willing to take the money and run. And not even that many, since in my understanding IBM could already have secured 5%.
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At first I thought it was a cut and paste of some long diatribe against some religious organization, with "IBM" substituted. But I couldn't find that from googling. However, when I searched for some pieces at random, I found a reference to
The programmer likely has a hobby of collecting these pretentious phrases to stock his program's database.
This is amusing, but not an especially impressive achievement. A bright person with less than one year of programming experience could've done it.
f you know anything about Steve Jobs, then you would know that he did toss a 100-page contract into the garbage can in front IBM's representatives and demanded a five-page contract instead.
I've never heard of this but if so then I applaud Jobs.
This reminds me of the EU constitution the French voted down. It was several hundred pages. But the Constitution of the USA fits on only a couple of pages. If something requires so many pages how are people supposed to understand it all?
Falcon
Should there be a Law?
But Cisco is trying to be a 'virtualization solution' company too. They have the networking reputation, Sun would flesh out the server rep, *and* Sun owns a Xen fork *and* Virtualbox.
The servers/workstations alone would be enough to make it a potentially wise decision for Cisco to pursue Sun, but with ownership over two virtualization technologies that are gaining mindshare against the high-cost VMWare, I would think that would cinch the deal for a company like Cisco.
XML is like violence. If it doesn't solve the problem, use more.
Sun is a terrific innovator. IBM is a great company. What's not to like? IBM outsources everything that isn't nailed down. They are a global company, not an American company, and they cut staff in the USA while growing elsewhere. Outsourcing is something Sun isn't that good at. They try but their heart's not in it. Keep Sun out of IBM and keep a chunk the the software industry in the USA.
I swear to God man, I've heard exactly that same line of shit from many a dweeb trying to convince some manager that Windows was going to be just as good as (UNIX, Linux, Solaris, AIX, Mac OS X, BSD, etc.) Did you cut and paste the Windows dweeb argument from an old UNIX vs. Windows flame war?
If you mod me down, I shall become more powerful than you could possibly imagine.
Sun acquired http://en.wikipedia.org/wiki/Cobalt_Networks and KILLED it.
IBM could have done the same to Sun.
"If it moves, tax it. If it keeps moving, REGULATE it. And if it stops moving, subsidize it."-- Reagon
Hence Govt must regulate market capitalization of all listed companies to TWICE their quarterly revenue.
This will
http://polldaddy.com/p/1322136
I'd like to buy homeland for our 10 million people. http://twitter.com/mahadiga
Solaris on SPARC has device drivers in user-space.
According to the Sun website, for Solaris 10:
Device drivers run in kernel mode and are prevented from directly accessing processes in user mode.
The 'add_drv' command on Solaris does the exact same thing that the 'insmod' command does on Linux, that is dynamically linking device driver modules into the kernel.
You are confused.
"I assumed blithely that there were no elves out there in the darkness"
Today IBM announced that it would no longer be supplying Tea or Coffee to their office workforce.
This is a true story, don't laugh, it's not funny.
My ism, it's full of beliefs.
Two things were cited in the FA.
One was the "change of control" provisions in executive contracts, and the fact that they extended more widely than IBM had anticipated. I suspect this is a result of Sun's dot-com history. There are probably a ton of stock-options spread around and the better deals had change-of-control equity clauses that make things more expensive for IBM. At the end of the day, this is probably not the deal-killer, though.
The other reason: "Sun was most concerned about securing tighter provisions to restrict I.B.M.â(TM)s ability to walk away from the deal." In other words, IBM wants flexibility to say "ewww, we discovered X and we're backing out" and Sun wants them to ink the deal in blood. Backout provisions and who can walk away in what circumstances before consummation is all part of the negotiations and lawyering, but I suspect Sun wants IBM to be totally committed when they sign, while IBM wants more flexibility.
At the end of the day, Sun needs to be bought by IBM. IBM would like to buy Sun, but it's hardly vital. I expect the next move is that Sun's stock drops back to $4 a share, IBM sits back, Sun reapproaches them, IBM buys them for less than $7 billion, and Jonathan Schwartz spends the next three years defending himself form shareholder lawsuits.
Advice: on VPS providers
Should IBM wind up buying SUN after all, I think the name of the company should be Blue Sun.
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I only hope that someone company with good management buys them out. There are very few of those, but they do exist.
Sun could have OWNED the entire server side, the way Microsoft owns the desktop, if only they played their Java deck of cards as well as Microsoft is playing .NET. Young uns don't remember it now, but there was a time when Microsoft was scared shitless of Java, and rightfully so. You install a runtime and the OS sorta doesn't matter anymore - that goes to the core of their entire strategy and rips it apart.
The problem was (and is) that Sun's software strategy was sorta like a chicken running with its head cut off - it went from the web to embedded to desktop to servers and everywhere in between without getting particularly good at anything (at least not thanks to Sun's efforts - community saved their server story, but that's about it).
What they should have done is they should have absolutely nailed desktop and server, and done so in late 90's before their cash cow hardware and support business started drying up.
McNealy is single handedly responsible for Sun's demise. Instead of building Java platform into a formidable weapon that would let them take over the world pretty much, he spent much of the late 90's trying to screw with Microsoft, when it wasn't even seriously in the enterprise server business - Sun's core market.
There was NOTHING Microsoft could do to stave off Java except for two things: .NET).
1. Brain dead reliance on bytecode interpreter in early Java VMs (compare that to unconditional JIT on first call in
2. McNealy's preoccupation with secondary issues, like keeping Java pure on MS platform. What he should have been thinking of is how to make it BETTER than MS implementation. Microsoft VM blew the doors off Sun's own at the time, its UI controls looked native (they WERE native), it had much faster startup time. The situation with lack of portability would have rectified itself had Sun's stack been superior to Microsoft's - people would just develop for Sun's version and ship a JRE on CDs, no big deal.
The only thing I want from them (or whoever buys them in the end) at this point is release ZFS under GPL. It's seriously difficult to get me excited with anything computer related these days, and ZFS is one of those things I want really bad on my Linux boxes (I know there's FUSE version, but I want production quality code).
After they do that, they can just fold up the tent and go out of business. I wouldn't care.
MS has no interest in buying Sun. If they were really interested they would have bought them a long time ago.
IBM (and to a lesser extent, Sun) GET uptime. They understand what it takes to develop systems with uptime measured in more years than slashot has even existed... think DECADES and you are starting to get the idea.
For all the bluster about uptimes with Linux, it really isn't all that great about it. For example, if you really do have 1 year of uptime on a public-facing system, you are a bad admin because there have been a number of security bulletins over any given year's time w/ Linux.
The miracle of Linux is that the uptimes are as good as they are, as cheaply as it costs. It's damned impressive that you can sustain 3-4 nines of uptime with a system board purchased at pricewatch for 60 dollars, yet the numbers don't lie - this isn't unusual!
The real question is whether or not those 4 hours per year of downtime at 99.95% actually is worth the jump from a $2,500 dollar server to a $75,000 dollar server. (I have no idea what an AS/400 really costs)
The number of cases where the additional costs are really worth it is rare. Less is more, better is worse, etc....
I have no problem with your religion until you decide it's reason to deprive others of the truth.
It struck me when I read this article at MSNBC
The stock price doubled since the initial rumors? Really...so who stands to benefit from this? Are Sun and IBM execs pals enough to hint at talks (without committing to any deal)
Understanding that IBM has invested quite a bit in java, I can see how they'd like to acquire Sun. However, it's a bit odd that they'd offer a significant premium (unconfirmed) and then bail on the possibility of another company getting to bid. Yeah, I can see how they'd not want to get into a bidding war over this, but I would've thought they'd retracted their offer as soon as a hint of the possibility of acquisition became news/gossip without something legally binding in place. This is IBM, they aren't known for bold initiatives, after all.
Something about this sounds off, regardless of the rest of this article's speculation on who would be a better Sun benefactor.
Did anyone else see the headline and thought it said 'IBM Withdraws $78 offer for Sun Microsystems'?
I hope EMC/VMware take a look at them. Purely for ZFS. Netapp would of course jump up and down but it would be nice to have ZFS on EMC SANs.....even better if it was re-licensed to work with Linux.
There is currently little motivation for massive outside investment into Open Office because there is no need for it: Sun has been doing a pretty good job. This would instantly change if Microsoft ever bought Sun, as the open source movement would quickly realize that Open Office was in danger and would fork it.
Believe it or not, something like this has happened before: the X.Org Foundation took over from xfree86.org when the latter, perhaps under MS's evil influence, was clearly trying to kill the X Window graphics system. The attempted assassination didn't work because copies of the X Window source code were all over the Net, and the takeover was nearly instant. X.org has been maintaining X Window ever since, with huge success.
The same thing will happen with Open Office. So regardless of who buys Sun, or even if Sun goes out of business, I have no doubt that the open source office suite will continue strongly.
I don't want to see Sun disappear, they have a great OS and have done the development community lots of good with the Java technologies, especially the server-side stuff.
But I hope IBM don't take them over, they have been known to mess up what they buy out. Look at Lotus Notes (I used to be a Domino web developer) - IBM nearly killed that product by holding it back so it didn't compete with Websphere.
I hate that damn ribbon and cannot even turn the fucker off. It takes 10 times longer to do things and takes up 1/3rd of my screen. The ribbon is one of the reasons I work exlusively with OpenOffice. ..and don't even get me started on that bastard of a standard OpenXML, which was such a fucked up standard that Microsoft had to bribe people to support it and corrupt the ISO process. Shameful.
Sorry to the little kiddies about my foul language, I have a Microsoft disorder and the bad words spew out of my mouth uncontrollably whenever the word Microsoft is mentioned.
So let Novell or Redhat buy them ...
step 1) Buy Sun
step 2) GPL DTrace, ZFS, other cool tech..
step 3) Profit!!!!
Not HP! Anyone but HP!
.NET running on Windows. And although Linux has finally started to gain some traction on the desktop, that too would come to a halt without OpenOffice.
Remember when Compaq acquired DEC? They quickly went out to all of DEC's unix customers and told them "Good news! We're migrating you to Windows!" A few made the switch, but most of them replied "Fuck you. If you're killing off your own unix business then we're moving to Sun." And most of them did.
Compaq and HP are now merged, and the once-great DEC unix business has all but been dissolved. Is that the fate which awaits Sun if they are acquired by HP? HP is firmly under the control of Microsoft. The day after the merger, they would receive their marching orders from Redmond: quietly suffocate Java and OpenOffice.
Java is currently the lingua franca of business logic, and whether you like it or not, it's a key enabler for Linux's success in the enterprise. Without Java, the data center would slowly be taken over by
Cisco is a slightly better bet, but I'm not sure they'd really know what to do with Sun. Cisco is fabulous at merging networking companies, but when they buy other types of companies (such as WebEx or the people who built Openchange) they really don't seem to know what to do with them. IBM would have been a good merger. Now I'm worried.
Tired of FB/Google censorship? Visit UNCENSORED!
IBM would have killed Sun and Java. I hope that if anyone buys them out, it'll be Google.
You make it sound like Java somehow failed or has been beaten by .NET
That is not my take. My anecdotal evidence from friends and peers indicates that ASP.NET and J2EE are about equal in the market. As of the time of this posting, ASP.NET search results on dice are 2307 and J2EE search results on dice are 3475.
If you remember IBM has submitted a bid to buy the fraud hit India based company Satyam. Does this mean they are very keen to buy Satyam than Sun?
I can agree with much that you say, but why do you need ZFS on Linux when you can have ZFS and so much more with Open Solaris?
The OS kernel is much more capable than Linux, particularly for heavy multi-threaded workloads that will matter much more in future with many-core systems.
Or do you simply need GPL for GPL's sake?
Comment removed based on user account deletion
Sun is like a mini-IBM: they have their own CPU architecture, their own UNIX, their own database software, etc. They both live and die on server sales and support. The major differences are, IBM is a much larger company, and IBM has already managed to build the services arm that Sun craves.
The problem is, no company (except IBM) wants to buy a mini-IBM, because it means a whole lot of effort to consolidate and streamline. So, if IBM won't buy Sun, Sun will have to slowly spin things off to make themselves attractive to a smaller buyer. The last time we saw this sort of thing happen, it was with the sale of DEC (another mini-IBM) in the 1990s. In the end, DEC had to be partitioned over several years - Oracle bought the database, Quantum bought the storage tech, and Compaq bought almost everything else. It was a mess, and very little of the old DEC survived the transistion intact.
Man is the animal that laughs.
And occasionally whores for Karma.
Sunset, or is Sun NOT set?
Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
Sun, to preempt Red Hat? Out of some far-reaching(?) strategy, ms could stab at the industry by taking over Sun for Unix/Linux/Open Source opportunities, if nothing else, just to muddy up the waters. Just a scary thought...
Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
The same thing will happen with Open Office. So regardless of who buys Sun, or even if Sun goes out of business, I have no doubt that the open source office suite will continue strongly.
These are two very different problems.
X Window System...in its standard distribution, is a complete, albeit simple, display and human interface solution, [with] a standard toolkit and protocol stack for building graphical user interfaces on most Unix-like operating systems
X Windows is a foundation on which you can build a GUI for a *NIX based OS.
It doesn't attempt to answer the more subte questions of how the design of a UI will affect the workflow in an office.
Say, circa 2000.
Both companies were graphics oriented. Apple had the desktop publishing & still photo design markets and multimedia aspirations, SGI had high-end visualization and 3D.
A marriage of the two, especially before OS X development had gone too far down the road, would have given Apple a chance to import the good parts of Irix and work towards a single OS runnable across all the architectures. Apple would have gotten datacenter credibility and access to workstation markets, and research markets dependent on workstations could have more easily run Apple desktops without losing workstation features.
Add in X-windows style display redirection, and you have a neat system that runs intensive 3D visualization locally but does the crunching remotely.
All this made more sense circa 2000 or earlier.
>> ASP.NET and J2EE are about equal in the market
You're forgetting that ASP.NET is much younger. And Java COMPLETELY failed on the desktop and on the web. Not so with .NET, which is about to come to fruition with Silverlight and WPF.
Regarding the JRE, yes the MS one was faster, but it was also far buggier and all that cool stuff you alluded to was not only WIndows specific but almost all of it was only in the MS JRE. That is what MS did to kill Java, in fact there was a long drawn-out legal battle about it. At that time an entry sparc work station was somewhere between 4 and 5 times faster and had 2 to 4 times as much memory than an office PC. MS had plenty of time to hone .NET until the commodity hardware was ready for fat run time environments. Also it did not help that the Mac version of the JRE was always a bit out of date and had its own peculiar set of bugs. Basically Java was moving too fast and too different form one machine to the next for it to succeed and only had the performance that was barely good enough on expensive sun boxes.
OpenSolaris is a broken piece of shit with no community. Try to set it to boot in text mode, and you will see what I mean. :-)
Sun can still pull of a few tricks but they should first learn and accept their mistakes, which they probably won't. One of the things Sun can do is go back to "Net is computer" strategy, there is a lot more to it than those three words.
"Price too low".