EMC To Monetize VMware

EMC is going to IPO 10% of VMware this summer which will give VMware a recruiting and retention incentive and money

By Security News Desk	Article Rating:
February 21, 2007 11:15 AM EST	Reads:	22,478

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EMC is going to IPO 10% of VMware this summer.

It'll give VMware a recruiting and retention incentive and money that's not EMC's to grow on.

It's also supposed to increase the visibility into VMware's performance and signal that the company is committed to its open platform strategy

EMC will keep the other 90% and says it has no intention of spinning VMware out or otherwise divesting itself of the rest of this "precious" asset, which it called "one of the fast-growing businesses in the history of the software industry."

VMware sales last year were up 83% to $709 million. It ended the year up 101% at $232 million and now has a $900 million run rate. EMC was otherwise stingy with any other financials ahead of the S-1 registration statement expected in March or April.

There was no indication how much it hoped to raise, but EMC did suggest that it would pay back "a portion" of EMC's "original investment" in VMware three years ago probably through a stock repurchase. EMC paid $634 million when VMware revenues were less than $100 million.

CIO, CTO & Developer Resources

EMC CEO Joe Tucci now thinks it's worth billions.

VMware had 300 employees when EMC bought it; it now has 3,000, they said.

The news tickled EMC's stock.

VMware Monetizes its Freeware
VMware has brought out a $1,500 SMB bundle meant to monetize the free VMware Server.

The new package includes VirtualCenter with VMware Server and enterprise-class support. VirtualCenter offers centralized management and rapid server provisioning. The basic kit includes three agents; additional ones can be purchased for $400 per physical server managed.

VMware says the free stuff has been downloaded 1.2 million times since it became available last July.

Published February 21, 2007 – Reads 22,478
Copyright © 2007 SYS-CON Media, Inc. — All Rights Reserved.
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SYS-CON's Security News desk trawls the world of security for news of software, hardware, products, and services that seems likely to be of interest to infosec professionals and summarizes them for easy assimilation by busy IT managers and staff.

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	ISSJ News 02/10/07 03:50:48 PM EST
	EMC is going to IPO 10% of VMware this summer. It'll give VMware a recruiting and retention incentive and money that's not EMC's to grow on. It's also supposed to increase the visibility into VMware's performance and signal that the company is committed to its open platform strategy EMC will keep the other 90% and says it has no intention of spinning VMware out or otherwise divesting itself of the rest of this 'precious' asset, which it called 'one of the fast-growing businesses in the history of the software industry.'