While we doubt the wisdom of having IBM buy Sun, we’re intrigued by Big Blue’s recent announcement that it is going to sell systems that will monitor water resources [see 1, 2, 3]. Water systems are leaky enough and, in general, inefficient enough that better management could provide significant benefits, and the Obama administration’s economic-recovery plan will make sure that funds are available. IBM already has relationships with many of the municipalities that will be the buyers. It has the expertise to handle such complex sales. It also has the professional services capabilities to help install and manage the systems.

There is upside, too: If IBM can make a go of it with these water systems, it could also become a major player in the management of the electrical grid, where there is probably even more to be done than is the case with water systems.

We’re not sure how big the market is for water-management systems. IBM’s estimate of $20 billion a year sounds too optimistic. But, whatever the ultimate size of the market, it should be a good one for IBM.