Feeds

What if IBM doesn't buy Sun?

Schwartz and McNealy exit would be on the cards

Combat fraud and increase customer satisfaction

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. ®

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Microsoft's Nadella: SQL Server 2014 means we're all about data
Adds new big data tools in quest for 'ambient intelligence'
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.