IBM to Acquire Sun for $7 Billion?

For I.B.M., the move would be something of a departure from its successful strategy of paring its dependence on the hardware business, where profit margins have declined, and increasing its investment in higher-margin software and services businesses,” Lohr reports.

The other big part of this story is that it’s the latest chapter in a dramatic week for what long has been a fixed segment in IT: the server computer market.

As TMCnet reported, Cisco Systems Inc. on Monday entered that market by unveiling a new data center architecture that includes compute, network, storage access and virtualization resources in a single rackable system.

IBM to Acquire Sun for $7 Billion?