I agree, though back when we, the board, were debating who was the most likely buyer of Cray Sun won. Too much has changed since then and the negatives have remained. For one, if Sun was interested in Cray, SGI would have preferred to sell to them rather than little Tera whose stock plummeted when SGI tried cashing out.
What has changed is that Sun is battling Q to Q to be profitable, as is Cray. Until they post a profitable year McNealy is unlikely to part with much of their cash nest egg. It is a big part of why Sun stock is holding up even as well as it is. As far as a stock deal, it too would dilute the cash per share of Sun's stock. Most importantly though is Sun is now firmly in the "hardware will be free and software rented" camp along with Microsoft. They have discontinued development of what was to be their next line of Sparc chips and are instead going with a later major upgrade, perhaps using their deal with Fujitsu to stay competitive. http://www%2etheregister%2eco.uk/2004/06/01/sun_sparc_fujitsu/
No, Sun is more interested in their Java and open office software lines than in Cray which has sold what 3 Opteron based systems? As such look for them to buy a software company with Bea leading the list, if indeed they chose to buy anything
P.S. I own stock in both Cray and Sun, with more Sun than Cray.