There has been much speculation in the news about Oracle buying Sun today. Unlike the potential IBM acquisition, this seems like a better, if unexpected, fit.
For a number of years now, there has been a large amount of consolidation in the tech business. The goal of most of these consolidations has been to create vertically integrated companies that were capable of meeting the end-to-end needs of their customers. Novell had this idea years ago when it bought Cambridge Technology Partners, but the ball really got rolling when Compaq bought Digital, largely for it’s consulting business. More recent consolidation has seen HP buy EDS, but this has not been the only way vertical integration has been created. Microsoft followed the route of expanding it’s software offerings to the high-end, while IBM built a large services business.