Valovic on Virtualization

Blog archive

More Rumors About Cisco and VMware

So have things settled down for VMware now that Diane Greene is out and Paul Maritz is in? Not really, it would appear, as more rumors are churning about a possible sale to Cisco. As recently discussed here, Cisco is already a minority shareholder with a strong interest in both network virtualization and developing many of the connectivity and infrastructure management piece parts of the so-called next generation data center. The company has the market heft and the cash to pull off an acquisition like this, plus a great track record in the fine art of integrating acquisitions into the Cisco technology base and product porfolio.

Whether it's Cisco or some other suitor, some changes in the current ownership structure seems likely according to Tom Bittman over at Gartner. Tom told me this morning that he thought "a slow divestiture" of VMware was what could be expected. Bittman thinks that EMC will slide from being an 85 percent owner today to 50 percent or less by the end of 2009. Why? His view is that unless there is a tighter technology coupling of product portfolios and marketing, the current arrangement is really not helping either company.

Posted by Tom Valovic on 09/02/2008 at 12:49 PM


Subscribe on YouTube