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July 9, 2007

software

VMWare: Now give me money (that’s what I want)

Posted Jul. 9, ’07, 12:30 PM PT by Dan Moren
Category | Software

Intel VMWare“The virtualization skirmishes are quickly boiling over into a full-fledged war as technology superpowers begin to funnel arms money into their coffers. In this case, it’s VMWare, which has just nabbed $218 million from none other than Intel.

The cold hard cash comes from Intel’s investment arm, Intel Capital, which is receiving Class A common stock for the deal. When all’s said and done, Intel’s expected to own 2.5% of VMWare, and will also reputedly end up with an executive on VMWare’s board. The two issued a joint statement that reads:

Intel’s investment is intended to foster strengthened inter-company collaboration towards accelerating VMware virtualization product adoption on Intel architecture and reinforcing the value of virtualization technology for customers.
Added a spokesperson later, “Hey Parallels, virtualize that.” Snap!

Of course, money isn’t everything, and Parallels still has a bit of a lead on VMWare, whose Fusion has just recently hit release candidate status. But with this cash infusion, VMWare could make huge strides on Parallels in the future—that is, unless someone starts slipping them some cash of their own—coughapplecough. Still, competition makes winners out of consumers and it certainly doesn’t harm Intel either.


1 Comments

Fletcher Sandbeck said:

VMWare's pre-order price is less than the upgrade price for Parallels. It seems like Parallels has a chance to lock me in to their product for good, but instead is leaving the door open for VMWare to make inroads.

July 10, 2007 7:13 AM

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