Sun enters the cloud, with IBM looming nearby |
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Sun enters the cloud, with IBM looming nearby
Sun Microsystems today launched a new cloud services platform, taking on the likes of Amazon.com, Microsoft and others in the emerging cloud computing market. But Sun's move into the cloud was immediately overshadowed by reports that computing giant IBM is in talks to buy Sun.
Sun's new Open Cloud Platform targets developers, startup companies and students, and is powered by Sun technologies Java, MySQL, OpenSolaris and Open Storage, the company said. Sun's two core offerings -- Sun Cloud Storage Service and Sun Cloud Compute Service, which are scheduled to roll out this summer -- are close parallels to Amazon's Simple Storage Service (S3) and Elastic Compute Cloud (EC2).
Even as Sun unveils the new cloud services, the Wall Street Journal reports IBM is in talks to buy Sun in a move to bolster its web presence. The Journal notes that the two companies' have similar business models:
The two companies have a common interest in that both make computer systems for corporate customers that aren't reliant on Microsoft Corp.'s Windows software, and their product lines are less dependant than rivals' on Intel Corp.'s microprocessor technologies. The two companies are also strong supporters of open-source Linux and Java software.
The Journal goes on to say if a deal goes through, IBM is likely to pay $6.5 billion in cash for Sun, which represents a more than 100 percent premium over Sun's closing price Tuesday.
If IBM does buy Sun, will it shut down, or retain, Sun's newly minted cloud services? IBM just signed a wide-ranging partnership deal with Amazon Web Services and plans to offer a range of software products through Amazon's cloud computing platform.
More broadly, IBM's interest in buying Sun could signal a new thaw in the M&A market. My colleague John Cook reported yesterday on chatter about a possible Google-Expedia deal, which sent Expedia's shares up.
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