Collapse of IBM deal could weaken Sun

Sales at Sun Microsystems Corp, already under pressure, could take a further

hit from the collapse of IBM's multi-billion dollar bid.

The failure of the high-end computer and software company to sell itself

might drive customers to its rivals-International Business Machines Corp, HP and

Dell Inc.

"Sun is committed to our customers and channel partners, and will continue to

do what has always defined the company: innovate for customers," a company

spokesman said in a statement.

Rob Enderle, Group Analyst, Enderle Group said the collapse of the talks

damaged Sun's credibility with its biggest customer group, the financial

services industry, which relies on high-end Sun servers to handle critical tasks

such as trading and other banking transactions.