Marriage of Dell and Sun: Will they or Wont they?
Filed in archive Business by gautam on May 30, 2008
Why this wont take place is because the businesses of both companies are poles apart. Sun Microsystems has been selling expensive servers whereas Dell is into the business of selling low end servers. With companies moving away from expensive servers to inexpensive servers being offered by HP and Dell in case a deal is struck it wont be of much benefit to the latter.
Secondly if you consider the financial status of Sun currently it won't add anything to operating income of Dell.
Thirdly if you compare Sun-Dell case with that of HP and EDS then there can be no comparison as the acquisition of EDS would not only add to the services of HP but would also supplement their revenue by $5.5 billion to $6 billion per quarter.
If you consider these aspects above then chances of marriage between Sun and Dell look pretty bleak.
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