Feeds

What if IBM doesn't buy Sun?

Schwartz and McNealy exit would be on the cards

7 Elements of Radically Simple OS Migration

Schwartz at the end of the road

In turn, this could prompt senior management changes in Sun, with the investors and the board taking the view that current management has run Sun into a dead-end, a cul-de-sac, from which the only exit for them is a company sale. If the company sale strategy fails then, surely, the senior management team must walk the plank.

They have lost any and all credibility as a management team that could take Sun forward as an independent entity. By not denying that talks with potential acquirers have taken place, and by not countering Otellini's reported and unaltered views about Sun hawking itself around, they are implying that the reports are correct and that they have no strategy for Sun going forward but a sale.

How can they then create a go-forward strategy and energise the company, having demonstrated that they believe the best Sun future is in a sell-off?

A failed sale will be a tremendous indictment of their capabilities and beliefs and they must, surely, be toast in that case. They will have zero credibility, having failed to sell Sun. Off with their heads and, quite possibly, exit Scott McNealy as well.

The board has not issued any denials, and so it too is being complicit in the realisation by Sun's customers and investors that Schwartz and his team have been and are trying to sell Sun with board approval.

A possibility for Sun, if the putative IBM buy fails, is that it will split itself up and sell off parts of the company in an attempt to gain funds, increase shareholder value and finance restructuring efforts aimed at closing down loss-making parts of the company. This will surely be done by new management with a new board chairman and new board members.

If the buy fails and the existing senior management team and board try to carry on as before, with Sun an independent entity, then they run the risk of becoming a laughing stock with no credibility within or outside the company. All they will be able to do is hold a Sun yard sale as competitors plunder Sun's customer base and channels.

It will be an ignominious end for what has been a very, very fine company - one that deserves better. ®

Best practices for enterprise data

More from The Register

next story
Microsoft's Euro cloud darkens: US FEDS can dig into foreign servers
They're not emails, they're business records, says court
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?