Menu
VMware to buy Zimbra to bolster cloud computing push

VMware to buy Zimbra to bolster cloud computing push

Acquisition will help the virtualization giant expand into the platform-as-a-service market

VMware is poised Tuesday to further redefine its cloud strategy by buying Yahoo's Zimbra open source messaging business in order to expand its stake in the platform-as-a-service market.

Zimbra, bought by Yahoo in 2007 for $US350 million, is an open source messaging platform popular on the Linux and Mac OS platforms and with universities and service providers. Yahoo offers both an on-premises and hosted version.

Reporting on the Boom Town blog, Kara Swisher said that VMware will pay $100 million for Zimbra and that many of the current Zimbra employees will move to VMware as part of an employee-retention agreement in the deal.

Chris Wolf, an analyst with the Burton Group, says the deal makes sense for VMware, which realizes it needs to expand from its focus on virtualization as competitors like Microsoft threaten to eat heavily into that market.

In April 2009, VMware, now run by ex-Microsoft executive Paul Maritz, bought Java vendor SpringSource, which makes Web application development and management tools with a heavy emphasis on open source.

VMware said at the time the SpringSource acquisition would lead to new products making it easier to build, run and manage applications both internally and on external cloud platforms.

Maritz has emphasized that VMware will not only support cloud infrastructure with its virtualization wares but he has pushed the idea of new cloud applications and their merger into an entire cloud platform.

"The Zimbra acquisition is a very smart move on VMware's part," Wolf says. "It is part of an effort to redefine the traditional application stack and what enterprises expect out of it." VMware realizes that if it stays on its current path, as a service platform for Windows applications, that it will eventually see Microsoft become the No. 1 player in the virtualization space."[The Zimbra acquisition] certainly is not a sure bet, but it is a move that VWware is going to have to make long-term because guys like Paul Maritz and [COO] Todd Nielsen know how the current path is going to play out if they stay on it," Wolf says.

"It is not a secret that a lot of enterprises are looking at platform-as-a-service offerings, for e-mail in particular, so the acquisition by VMware is timely. Zimbra gives them a play in that space and it gives them a way to potentially start to break the dependency that typical enterprises have on Microsoft, which often times begins with Exchange," he says.

Wolf emphasizes, however, that Zimbra is far from the only move VMware must execute. The company is entering a market that not only features Microsoft, but the likes of IBM/Lotus, Cisco and Google.

"This move is not a move for 2010, this is a move for setting VMware up for 2015 to 2020," Wolf says.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computingGoogleVMwarevirtualizationYahoozimbramergers & acquisitions

Brand Post

How to become the best IT MSP

This article provides guidance for managed service providers (MSPs) that want to grow their business. It is also useful for any IT service provider looking to move from the break-fix model to managed IT services.

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
Show Comments