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Conglomeration conga

 

Whether Sun and IBM ever actually do tie the knot, the M&A craziness will continue.  It’s interesting to parse reactions to this possible deal. For IT shops, there’s angst because some Sun partisans hate IBM and people with religious devotion to IBM won’t touch Sun. If those two data center giants converge, the fear is less competition and higher prices.

 

VARs are acutely interested in this because a vendor they may have been selling against may soon magically morph into their vendor.  This raises interesting channel conflict issues. Despite its well-documented troubles, Sun has gotten good reviews for its channel management by a handful of its elite partners. They’re not eager to be thrown into the IBM pot.

 

 

Many VARs and others see more buyouts on the horizon. Some cite Cisco’s bold move into servers—where it will compete with former best buds like Hewlett-Packard—as a motivating factor for those companies to bulk up.

 

Oracle is (or was) on the hunt for Virtual Iron and whatever other company ain’t nailed down. Nearly everyone seem to be circling VMware, which is still majority owned by EMC. And some even see EMC as a possible buyout candidate. HP, no slouch when it comes to buying companies, has been awfully tight with EMC lately. Illuminata’s Gordon Haff said HP and EMC have been so cozy lately they should “get a room.”

 

Don’t know about that, but with the economy as it is, and small companies struggling for survival, wait for more buyouts by the big boys in tech.

 

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