This time it's IBM and Sun instead of Yahoo and Microsoft (although Yahoo and Microsoft haven't gone away yet, much to my annoyance). What is up with these companies? Just roll over and be acquired already! Does anyone at Sun imagine a song and dance routine is going to improve their position right now? Or, as some reports indicate, do they really believe that Sun is really better off on its own? If so, they need a new motto… "The network is the computer" to be replaced by "Proudly losing money since 2000." If you're going to implode, do it with a little gusto!

Unlike Microhoo (this could have been, what, ISun? SunBM?) this actually seemed like a good deal for both parties on the face of it; Sun needs a bailout, IBM could use some fresh faces (as is ever the case at IBM). IBM, however, can go out and buy itself someone else. Sun hasn't exactly had suitors queuing up for its hand. And this is the worst of all possible worlds for Sun; despite legions of committed fans of the companies hardware and software technology, one has to accept Larry Dignan's take on the reaction among those who sign the checks: the sheer amount of confusion and uncertainty created by the failure of this deal creates risk that can in most cases be avoided by proceeding with other vendors. Sun isn't unique (no established computer company is) in its capabilities. It has advantages and disadvantages like any vendor, but the risk of failure is a big minus. And the internal dissent that seems to be behind it makes it that much worse. Throwing financial analyses aside, it's one thing when a company walks on a deal showing a united front, confident in their ability to prevail alone. Squabbling and infighting aren't going to convince anyone of the long-term stability of the company.

My guess is that this will take something of the same path that the Yahoo/Microsoft deal fallout took. Investors will rebel, executives will be shuffled, and negotiators will be back at the table. If so, Sun will be negotiating from an even less advantageous position than they started from. Although some reports indicate that IBM is not the absolute last chance, it's certainly the most appealing option for existing Sun customers, and Sun risks a revolt among them as surely as the one from investors if they can't bring Big Blue back to the table.