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July 27, 2007
Never battle the Dark Side alone.
EMC is making the right moves in terms of virtualization. Two weeks ago, they Intel to buy in big-time to VMware, this week, it's Cisco:
Cisco today announced a $150m investment in the virtualization software maker through the purchase of VMware's Class A shares. Should the investment meet the usual closing conditions, it would give Cisco a 1.6 per cent stake in VMware. EMC is in the midst of selling off 10 per cent of VMware via an IPO.
EMC is shutting out two of the big hardware vendors in this arena, HP and IBM. Both companies make the blade servers that are so popular with virtualization customers, but they also have their own agenda in the storage arena. HP has its StorageWorks line for mid-range, and they OEM Hitachi for the enterprise side. IBM does their own storage subsystems. So, rather than give a piece of an EMC company to direct competitors, they're looking for allies from the periphery.
This cash influx plus the buy-in from two big players will help should Microsoft truly get serious in the virtualization area.
Posted by Edward J. Branley at July 27, 2007 11:34 AM
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