This is your fate, Dell-Sun ......

Wow - this could really be scary!!!

<a posting from networkfusion>

Today's focus: Sun could be perfect acquisition for Dell

By David Vande Casteele

It is no secret that Sun has been in a steep decline, and now it
appears that CEO Scott McNealy is getting it ready for the
auction block. Before you hit the "Delete" key, consider this:
Why lay off almost 10% of your workforce the same day that your
company wins a multibillion-dollar lawsuit? Maybe to set your
company up for a takeover.

That sure seems like a possible outcome when you consider the
performance of Sun over the past couple of years. But who would
want what's left of a once-successful tech powerhouse? Maybe
Michael Dell.

Dell's team has been enjoying quite a bit of good press and
solid financial performance during a period when many of the
tech players have been struggling. The trick in tech is not just
getting out in front, but also staying there. Dell has been
successful in the pursuit of dominating the PC market and is
trying to penetrate the lucrative server market. Picking up Sun
could be just the ticket to success in servers and the bulk that
Dell needs to go after the likes of IBM and HP.

Sun is struggling for its life and needs help now. Although the
company will receive almost $2 billion in cash from the
Microsoft settlement, it may not be enough to stay alive, and it
certainly won't solve the other critical issues that Sun faces.
Although beaten badly in the market, Sun does have some powerful
assets that Dell would find valuable.

First, Sun's services business is one of its bright spots and
could boost Dell's top line by almost 10% and contribute a
valuable component to its product mix. Technology-related
services are highly profitable and are required for any vendor
seeking to do business with Fortune 1000 companies. Not only
would the services be important to CIOs everywhere, but with
Sun's high-end servers and the cadre of customers, it would also
give Dell additional credibility.

Also key to Dell becoming a credible alternative to HP and IBM
is having a set of tools to manage the systems that it sells.
Acquisition of Sun would give Dell an interesting portfolio of
management tools as well as some significant intellectual
capital around them.

Advancing technological leadership from Sun's significant annual
expenditure in R&D would be an additional strength brought on by
an acquisition. Couple the advancements made by Sun's R&D
efforts with Dell's penchant for low-cost manufacturing and
distribution, and you have a powerhouse with market momentum.

Finally, Sun's international presence would be one last valuable
asset for Dell, which up this point has only dabbled offshore.
The international markets continue to present opportunity and
Dell would eventually need to be sell there if it wants to truly
compete with the other two players in the ring today.

With the integration of these key elements, Dell would become a
real threat to HP and would be positioned to challenge the Big
Blue Machine.