A Good Deal for Sun?
- IT TOPICS:Storage
As I read more and more pundits who are in full agreement, as they seem to be, that Sun Microsystems is overpaying for the wrong company, I think the deal to pay $4.1 billion for StorageTek will turn out to be a sweet one for Sun. After all, everyone knows Sun can't seem to get storage right on its own, so it does need a partner. And the fact that Sun and StorageTek have a long OEM relationship is actually a good thing. The engineering teams are already comfortable with one another and have proven that their products complement each other in the market. And, after the merger, the combined companies will still have enough cash in the bank, better than $4 billion, so Sun can still buy a vendor bauble or two, should it choose to do so.
Having a big storage arm will help Sun generate cash, profits and new customers. It may not be sexy, trendy, or even related to the Almighty Internet or the highly revered open-source movement, but it is a pretty shrewd deal.
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