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Cisco Buys More VMware Stock

David Marshall reports that Cisco is increasing its stake in VMware. Not a huge amount -- $13.3 million -- but it is a sign of the companies' growing relationship.

Cisco already had $150 million in VMware, and this just bumps its percentage of stock from 1.6 percent to 1.7 percent. Nothing to write home about, until you consider Cisco's Nexus 1000 virtual switch, which was all the rage at VMworld. The prospect of Cisco buying VMware has been floated before, and although Cisco CEO John Chambers has denied such a desire, one still has to wonder.

VMware just finished a strong quarter, possibly a harbinger of the company pulling out of its swoon. That would make it an attractive target, and it's more clear than ever that Cisco has designs on the virtualization market. Now, note that I am not predicting anything here, nor am I rumor-mongering; I haven't heard that something is in the works. It's just that this confluence of events makes me wonder.

Posted by Keith Ward on 11/04/2008 at 12:48 PM


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