IBM / Sun deal could spark industry consolidation

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} The widely rumored $6.5 billion deal between IBM and Sun Microsystems could spark a round of consolidation in the industry if it goes through.   The proposed acquisition would be IBMÔÇÖs biggest yet, and would surely shake up the corporate computing world.   For one thing, as IBM and Sun cover many of the same areas of the server business, Big Blue executives will have their hands full deciding what to keep and what to let go, with other interested parties watching closely.   There has already been some consolidation between companies specializing in computing infrastructure, with Hewlett-PackardÔÇÖs acquisition last year of technology-services provider Electronic Data Systems for $13.9 billion.   Cisco Systems also announced this week its long-rumored plans to start selling servers, a move that pits Cisco against longtime partners like HP and IBM.   A successful deal would give IBM access to many businesses that use SunÔÇÖs servers or software and could be persuaded to buy other IBM products and services.Many of SunÔÇÖs customers are heavy hitters in finance, telecommunications and the government, areas where IBM is looking for a bigger footprint.   SunÔÇÖs commitment to R&D has made it a pioneer in high-end servers, microprocessors for servers, and the open-source software it gives away for free in hopes of attracting new customers to the Sun brand. Sun has also been a pioneer in networked computing and its technology was instrumental in the rise of the Internet.   *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *