IBM is negotiating to acquire Sun Microsystems at a critical time for the tech industry. A major shift is at hand in the way businesses handle computing tasks, and giants such as IBM and Sun are under pressure to alter the way they operate. Neither company would comment on the potential $6.5bn deal, but it's clear that if IBM adds Sun's internet technologies to its arsenal, it will be better poised for what comes next.
The rise of what's known as cloud computing has the potential to turn the tech industry on its head. Rather than buying and managing their own machines, businesses can buy everything from salesforce-tracking software to supply chain management as a service, over the internet.
Source: Business Week