Smart move. One of IBM's core competencies is hardware (assembly); one of Sun's core competencies is software (esp. virtual space software) and innovation.
The danger, of course, would be in losing that innovation when/if the acquisition occurs. If IBM does end up acquiring Sun, it would probably be a good idea to let it maintain as much independence as possible. There seems to be an inverse relationship between size of an organization and its ability to adapt and innovate.
Except that IBM has been selling their hardware units off for years... hard drives to Hitachi, laptops to Lenovo, etc. IBM's core competency now is consulting services supporting software.
I think Sun makes sense for them to acquire (their business models are becoming quite similar already)... but IBM's days of having a hardware focus are over.
Do you think their HPC and server hardware will go, too? I'm guessing they'll stay in whatever hardware business is not commoditized, which means a lot of Sun's hardware fits into IBM's portfolio.
The danger, of course, would be in losing that innovation when/if the acquisition occurs. If IBM does end up acquiring Sun, it would probably be a good idea to let it maintain as much independence as possible. There seems to be an inverse relationship between size of an organization and its ability to adapt and innovate.