A week ago, we reported that IBM was in acquisition talks with Sun. Sun has been in trouble for a while now, and has been shopping around the Valley for a potential buyers for the company. This report came from “people familiar with the matter”, but it seems that we now have a confirmation from none other than Intel’s CEO, Paul Otellini.
Otellini made his remarks about the IBM-Sun talks during an employee webcast earlier this week. “I can tell you that Sun was shopped around the valley and around the world in the last few months,” Otellini said, “A lot of companies got calls or visits on buying some or all the assets of the company. It looks like IBM is in the hunt now. And at a hundred and some odd percent premium, I suspect they’ll get it.”
Intel’s CEO also made a doom and gloom prediction about the future of Solaris and SPARC. “I think the stuff on Solaris and SPARC is likely to see EOLs over time through the IBM acquisition. But no strategic reason for IBM to maintain that except to attempt to convert the very large Sun SPARC Solaris base to power. I think that would be their most likely strategy as part of this.”
Of course, Otellini had a few words to say on whether Intel actually really cares about this. “Is it good or bad for us? I don’t know. I’d rather have Sun be independent, I guess.” In other words, no, Intel couldn’t care less.
Hmmmm. It might be just me but I think we need a link to what Otellini said rather than just a link back to the original story, which wasn’t really news anyway.
The brown stuff has hit the fan in the last few months with Sun. The revenue has been heading south for a number of years, costs are still far too high, they can’t lay off any more people and over a reasonable amount of time the share price doesn’t lie. Once multi billion dollar companies can’t sustain themselves any longer they tend to go quickly.
It’s a tragedy really because it just shouldn’t have happened. As happens with these things you need look no further than the top with weak leadership who didn’t understand their technology, the way things were going or the opportunites that were there. They let the lunatics run the asylum, allowed their acquisitions to be squandered and politically bullied and they tried to convince themselves that everything would return to ‘normal’ if they could just come up with one more innovation or product that would bring people to their senses.