IBM in talks with Sun - Data and Server Racks

IBM in talks with Sun - Data and Server Racks Network equipment giant IBM is in acquisition talks with Sun Microsystems.

If a takeover is successful it could result in a significant amount of consolidation in the software, server and storage markets, it has been claimed.

According to the Wall Street Journal, IBM could be looking to spend $6.5 billion (£4.6 billion) on Sun Microsystems, which is currently worth $3.7 billion.

It is expected that any deal between the two software and hardware giants will be closely scrutinised by regulatory bodies given the companies' similar roles.

Sun Microsystems' value peaked in 2001 with the dot-com boom but has fallen dramatically since then.

Meanwhile, IBM has struggled to position itself in the lucrative server market, according to research firm IDC.

In related news, Cisco has unveiled its new Unified Computing System, which it claims is backward compatible with legacy hardware.

However, Cisco's fibre optic switching fabric has been criticised by Gartner's First Take report, which claims the technology has limited bandwidth. ADNFCR-1186-ID-19080797-ADNFCR

Last Updated: 18/03/2009 18:00

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