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June 6, 2005 Sun To Acquire StorageTek. Hmmm.by Galen Schreck, Frank E. Gillett with Richard Fichera, Thomas Powell |
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This is an excerpt
Executive Summary
In an unexpected move, Sun Microsystems announced plans to acquire StorageTek for $4.1 billion in cash. StorageTek has long been a dominant player in the tape industry, but its disk arrays, software, and consulting services have largely been overlooked by the market. Forrester believes that customers will see few technology changes as a result of the acquisition, since the deal is less about technology and more about building an organization that can profitably compete against the likes of EMC and IBM. The near-term case for the acquisition makes some sense, given StorageTek's profitable business, big customer list, and thousands of storage sales and service professionals. But the longer-term rationale eludes us, even after speaking with Sun's EVP of Network Storage Products Group, Mark Canepa, and StorageTek's VP and GM of Information Lifecycle Management Solutions, Brenda Zawatski. The bottom line: Forrester is not yet convinced that the two firms have complements that will justify the price tag.
This is an excerpt
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