This week on the EIC Squared podcast, ZDNet’s Larry Dignan and I discuss the latest reports surrounding the Microsoft-Yahoo mating dance. We expect some news later Friday or early next week as to which way Microsoft is leaning–fight or flight.

I visited with IBM executives this week, and share with Larry my thoughts on IBM’s focus on the mainframe and its budding relationship with Google. In addition, we discuss Sun’s challenges in turning free, open-source software into profits for the company. And we talk about the upcoming JavaOne and SAP Sapphire conferences.