Cisco pursues virtualisation: buys into VMware

Stuart Corner
Monday, 30 July 2007 09:54

Business IT - Technology

Separately VMware and Cisco have entered into a "routine and customary collaboration agreement that expresses their intent to expand cooperative efforts around joint development, marketing, customer and industry initiatives."

Intel, through its global investment arm, Intel Capital, announced on 9 July that it would invest $US218.5 million for 2.5 percent of VMware, noting that "VMware's base virtualisation platform virtualises the Intel architecture [and] Intel microprocessors comprise the majority of the systems on which VMware's virtualisation products are deployed."

The two companies said the investment was "intended to foster strengthened inter-company collaboration towards accelerating VMware virtualisation product adoption on Intel architecture and reinforcing the value of virtualisation technology for customers."

VMware's parent company, EMC - which bought VMware in 2004 for $US635 million - announced in April that it would offer about 10 percent of VMware stock in an IPO. It said the move would "unlock more of VMware's value for EMC shareholders, as well as strengthen VMware's ability to attract and retain the software industry's top talent and reinforce EMC's commitment to VMware's strategy of platform neutrality." VMware's web site says the IPO is scheduled for "mid 2007".

In January Linux Magazine named VMware one of its '20 Companies to Watch in 2007', citing the company's "willingness to address the technology challenges of virtualisation head-on."

"By providing a clear path for enterprises to integrate virtualisation technology, VMware is helping drive the enterprise adoption of Linux," said Bryan Richard, editorial director of Linux Magazine. According to VMware, more than 70 percent of those running Linux server environments using VMware products.