Menu
Cisco, Intel buy into VMware

Cisco, Intel buy into VMware

Cisco Systems plans to acquire a 1.6 percent equity stake in virtualisation 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 it plans to buy US$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 six 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 virtualisation software and Cisco networking products. Cisco and VMware also announced they've agreed to collaborate on joint development and marketing.

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.


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 VMwareintelciscoDiane Greene EMC

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments