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Sun and IBM deal called off

News Roundup: Sun and IBM can't reach agreement; Google Android OS could give Microsoft a run for their money; Intel Nehalem chips aren't tempting enough; other systems news.

Systems Channel News Roundup for March 30-April 6, 2009

Sun and IBM can't reach agreement

IBM has pulled out of its offer to buy Sun Microsystems on Sunday, according to several online reports.

Sources say that Sun refused to negotiate solely with IBM, causing IBM to back out of the deal. It's reported that the two companies also couldn't come to an agreement in terms of price and licensing conflicts.

IBM was willing to pay $10 to $11 per share to own Sun, but after continued negotiation, the price had declined to $9 to $10 per share. According to online reports, the lowered price was insurance that IBM wouldn't back out of the deal, even under increased regulatory examinations.

The acquisition of Sun by IBM was seen by many as an opportunity for IBM to take as much as 40% of the worldwide share of server sales.

Google Android could impact Microsoft

Google has convinced Hewlett-Packard and Dell to consider preloading Google's Android OS rather than a Windows operating system on at least some netbooks, according to

While Android is primarily an OS and development platform for mobile phones, it is unlikely to stay that way for long. Google is offering its operating system to hardware OEMs for free, which is much more enticing than the $15 per netbook fee that Microsoft charges.

Still, some solutions providers think Microsoft will adjust its licensing and pricing accordingly to ensure that Google doesn't pose a significant threat.

Intel Nehalem chips have bad timing

Although the Nehalem Xeon processor has set off a chain reaction of new product launches, it's not enough to make IT pros tap into their dwindling budgets. Intel users are waiting for the chips to mature and the economy to improve, according to

Two of the most significant features of the new Xeon is the integration of a memory controller into a CPU that should decrease bottlenecks and QuickPath Interconnect, which gives Nehalem 2.4 times more bandwidth than before.

CA develops virtualization community, products

The CA Partner Community for Business Transformation Through Virtualization Management was designed to be a resource that partners could use to improve efficiency, quality and agility of customers' virtualized environments. CA hopes it will help partners evolve with changing market conditions and develop sustainable business growth. Key members of the community include Empowered Networks and VMware.

CA also announced VMware Ready products including CA Advanced Systems Management.

Check out last week's Systems Channel News Roundup.

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