OStatic

I can safely say when I covered the speculation that IBM and Sun were wrapping up the finer points of the acquisition Friday, I figured that if there was anything left to say come Monday, it would deal with idiosyncracies of the agreed-upon terms. Even though the announcement is imminent reports were not officially sanctioned by IBM or Sun, there was no reason to believe the sources were dishonest about the information they gave. It still doesn't seem there was dishonesty, or that these sources made wildly off-base assumptions about what was to come. It seemed as though IBM's purchase of Sun Microsystems was set to proceed, until late Saturday evening, when IBM and Sun broke off negotiations, according to Bloomberg.

There had been much debate about how an IBM acquisition would affect Sun's open source efforts. As those questions move even further into the hypothetical realm, far more troubling questions loom about Sun's next potential buyer -- or its choice to weather the storm on its own.

According to the New York Times and Bloomberg, IBM's purchase of Sun Microsystems is imminent. The official announcement and terms of the acquisition will most likely be made public on Monday, but a late in the day announcement hasn't been ruled out. It's estimated that the purchase will cost IBM nearly $7 billion.

There's been much speculation and discussion both here at OStatic and elsewhere about what this means for Sun and its open source projects.

According to The Register, Sun plans on laying off between 15-18% of its workforce (an estimated 5,000-6,000 positions) and restructuring itself into three major divisions, thanks to earlier periods of slowed growth (or losses) and the already bleak economic picture.

Sun's President and CEO Jonathan Schwartz says that this is a decisive action in the face of the economy, and that these cuts should facilitate the delivery of key open source platform innovations, including MySQL. In his corporate blog, however, Schwartz drops a few hints about other projects, such as OpenOffice.