July 27, 2007
Cisco to buy equity stake in VMware
Cisco's acquisition of a stake in virtualization software player VMware mirrors Intel's investment earlier this month
Recommend ThisCisco Systems plans to acquire a 1.6 percent equity stake in virtualization software player VMware, mirroring a step Intel took earlier this month.
The investment is part of an upcoming initial public offering (IPO) of 10 percent of VMware's stock.
Cisco said Friday that it plans to buy $150 million of VMware Class A common shares, which are owned at present by EMC, VMware's parent company. The move is subject to regulatory and other closing conditions. Once the investment has been made, Cisco will own around 1.6 percent of VMware's total outstanding common stock. According to an updated VMware S-1 filing with the U.S. Securities and Exchange Commission, Cisco will buy 6.0 million shares, valuing each VMware share at $25.
VMware is considering whether it will appoint a Cisco executive to its board of directors.
Cisco hopes taking a stake in VMware will help bring two companies closer together and result in more users adopting VMware virtualization software and Cisco networking products. Cisco and VMware also announced they've agreed to collaborate on joint development and marketing.
Earlier this month Intel announced that its venture capital arm, Intel Capital, would invest $218.5 million to purchase VMware's Class A common stock at a price of $23.00 per share. The investment will give Intel 9.5 million VMware shares or around 2.5 percent of the company's total common stock. VMware intends to appoint a new member to its board from Intel.
EMC announced plans to spin off 10 percent of VMware in February and plans to offer around 33 million shares priced at between $23.00 and $25.00 per share. The storage vendor expects the IPO to take place during its third fiscal quarter, which will end Sept. 30. After the IPO, EMC will continue to control VMware and own the bulk of the company's stock. EMC hopes to raise as much as $740 million from the public offering.
EMC acquired VMware in January 2004 for $625 million and has run the company as a separate software subsidiary headed by Diane Greene, VMware's former president and CEO.
White Paper
D2D Virtual Tape Library Replication Primer
This whitepaper explains the terminology and concepts behind Data Replication technologies and establishes some sizing rules through worked examples. Learn the new paradigm in disaster tolerance—protect data anywhere.
Download now »
White Paper
An Alternative to Virtualization for Datacenter Cost Savings
Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.
Download now »
White Paper
Why Your Firewall, VPN, and IEEE 802.11i Aren't Enough to Protect Your Network
The emergence of WLANs has created a new breed of security threats to enterprise networks.
Included in HP ProCurve WLAN solutions is security technology that alleviates threats from WLANs through:
* Monitoring wireless activity inside and out of the enterprise
* Classifying WLAN transmissions into harmful and harmless
* Preventing transmissions that pose a security threat to the enterprise network
* Locating participating devices for physical remediation
White Paper
Bringing the Edge to the Data Center
Effectively address data protection challenges, implementing solutions that help store and protect business–critical data while cutting costs and improving efficiency and reliability.
Download now »
- Opportunities and Challenges with the Convergence of Data Center Networks | White Paper
- Network Operating System Evolution | White Paper
- How Operating Systems Create Network Efficiency | White Paper
- Data Center Survival Guide | White Paper
- Three Solutions to Common Data Integration Challenges | Webcast
Sign up to receive Business Resource Alerts
Super Multi NAS devices from LG
See how AT&T can help protect your network. Make IT Work As One at novell.comHP ProLiant G6 Servers. Perform like a superstar, Save like an accountant.HP ProLiant G6 Servers. Perform like a superstar, Save like an accountant.Unified Communications: Thoughts, Strategies and Predictions. Join the discussionOptimize Linux* for high performance and energy efficiency on Intel® architectureSee how Intel is working across the Open Source ecosystem to help drive rapid technological innovationTDWI checklist helps define data readiness for analytics. Download report.<802.11n Drives an Architectural Evolution
Maximize your IT Budget with the Fujitsu Dynamic CubeToday’s IT means business. New eBook shows you how to align your IT investments.A new level of interoperability. Make IT Work As One at novell.comLimited-time offer: Save up to $100 on Polycom phones. 64-page prescriptive guide to security, compliance, and IT operations.Drive innovation with Intel and Open Source softwareLinux Contributions and Support from IntelLearn about Foundations of Green IT, from CTO Marty PoniatowskiIncrease UPS efficiency without sacrificing protectionIn less than 45 minutes, Palisade Systems protects your data
