Cisco Buying Sun? – Cisco Announces It’s Move Into Server Business

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This past October I posted about Cisco getting into servers and compute.  I broke the news quietly but only a few handful of insiders got the message (GigaOm reported early in March 2008).   Word has been circulating on the street for many months on this announcement and it will sure have an impact on Cisco’s partners. Now it’s been finally announced.

What is now being kicked around is Cisco’s move to buyout Sun Microsystems.

What do you think?  Should Cisco buy Sun and really get into the server business?

Author: John

Entrepreneur living in Palo Alto California and the Founder of SiliconANGLE Media

8 thoughts on “Cisco Buying Sun? – Cisco Announces It’s Move Into Server Business”

  1. I think personally Sun is too diversified for Cisco to take without stripping it severely. I have a hard time seeing Cisco wanting MySQL and all the other parts of it’s business beyond the server and therefore it would have a high risk of negative outcome. I think of another acquisition of a buyer taking a company that’s too diverse. Compaq takes Digital Equipment Corp. Compaq bought DEC for the service organization, not the systems. It had massive indigestion in corporate culture and couldn’t spin off the parts which weren’t core (disclosure: I was working in DEC research at the time). It didn’t make Compaq stronger. It did make it a better target for HP which has a similar diversity pattern. However, this is a little different situation. So my questions are: How well would the cultures mix? Could Cisco handle the items of Sun not core to it’s interest? Cisco does have a long history of company acquisition, and if anyone could take Sun successfully, I think Cisco could do it.

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