The deal also would help IBM bolster its newly created unit for cloud computing, where providers rent out computing and storage so customers don’t have to buy their own equipment. Last month, Sun announced plans to offer the Sun Cloud Compute Service and the Sun Cloud Storage Service by this summer, entering a market projected to exceed US$40 billion by 2012.
The collapse of talks with IBM may force the company to pursue a deal elsewhere, with Hewlett-Packard and Cisco Systems Inc, which entered the server market last month, among possible suitors. Intel Corp chief executive officer Paul Otellini said last month that Sun had been approaching potential buyers over the past few months.
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