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July 9, 2007
Intel ponys up on VMware
Full disclosure: I teach for EMC2's Global Education division about 30 weeks a year.
when EMC2 acquired virtualization leader VMware, a lot of us who know EMC first thought, wow, they're going to totally bollix this product up. As a huge VMware fan, I'm very happy to see EMC playing it very smart:
Reinforcing its status as the software darling of the moment, VMware has secured a whopping $219m investment from Intel.Intel will pay $23 per share for close to 10 million shares in the virtualization software maker, giving it a 2.5 per cent stake in all the outstanding common stock. In addition, Intel's deep pockets have purchased a board seat at VMware. This deal comes as VMware, an EMC subsidiary, approaches an IPO (initial public offering).
To put things in context, EMC bought VMware for $635m back in Dec. of 2003. Since that time, VMware has doubled its revenue just about every year.
EMC is only selling 10% of VMware, and Intel is stepping up. That's a wonderful sign for the long-term health of the product pipeline.
In the arena of computer training, virtualization makes a lot of sense and is very profitible, and that's just one of the many applications where VMware is an attractive to racks and racks of servers.
Posted by Edward J. Branley at July 9, 2007 7:54 PM
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