This is probably more of a defensive move for Big Blue than an offensive one. The WORST thing that IBM could do is to let CSCO quickly gain credibility in the server market by letting CSCO acquire JAVA first! As a side benefit, $6.5B is a great deal, considering that IBM would get JAVA's $3B cash, would get even more BIG $$$ gov't contracts with JAVA's excellent SAM-QFS HSM solution, and could begin moving away from OEM'ing NetApp in favor of JAVA's high-growth Open Storage solutions. Let's just hope that CSCO doesn't start a bidding war!
Have you seen CSCO's balance sheet? It's so much more beautiful than IBM's! And, knowing CSCO, they WILL enter the server market, and they WILL do it intelligently. I'm just saying that it would be very smart of them to acquire JAVA to start with. And, it would be very smart of IBM to prevent that from happening.