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If IBM Corp. (NYSE: IBM) really does go ahead and buy Sun Microsystems (NASDAQ: JAVA) for a cool $6.5 billion or more, the two former adversaries could be joined into a powerful computing combination. One of its -- no, its largest competitor would be: Microsoft Corp. (NASDAQ: MSFT). With many powerful players challenging Microsoft's dominance these days (Google in the consumer space), here's another one. That is, if the merger speculation turns out to be true.
Microsoft CEO Steve Ballmer doesn't seem to care. Ballmer, who dismisses any new competition, indicated that "Someone must think [an IBM-Sun deal] is a good idea for the rumor to even exist, I don't exactly get it." Well, Steve, if the rumor does end up to be true, Microsoft will see a renewed competitor in the server space. You know, the one where Microsoft recruits billions of dollars per quarter through server software sales?
Ballmer also seemed to think Sun's intellectual baggage was too much saying, "You pick up a lot of stuff when you buy Sun ... a deal gives IBM a year or two where all they're doing is digesting it. I relish that year." That year may be soon, and if IBM and Sun Microsystems do combine, that year could even be 2009.
Ballmer's comments show that he is either flippant about a strong new potential competitor or really isn't afraid. Wonder which one it is?
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Reader Comments (Page 1 of 1)
3-24-2009 @ 1:23PM
cpayne said...
Ballmer of all people should be cautious of his comments regarding competing IT companies merging.
Mergers are the only ways that companies can compete in the marketplace, and can easily bring down monopolies such as Microsoft.
This is of course how Microsoft innovates. They acquire other companies and their technologies, then conveniently rebrands that new acquisition as a Microsoft idea.
This is Steve Ballmer throwing around more fodder. At least he is not throwing office chairs at IBM and SUN. He could put his back out.