EMC Corp. (NYSE: EMC)
finished a busy shopping year today by acquiring server virtualization startup
VMware
for $635 million in cash and stock.
EMCs long-term strategy is to combine the Palo Alto, Calif.-based software companys server virtualization programs with its own storage virtualization products to create software that provisions and manages storage comprehensively in data centers.
VMware has around 360 employees and had revenue of approximately $100 million in 2003. EMC forecasts VMware revenues of between $175 million and $200 million in 2004. It is the third major acquisition EMC has made since July. It previously purchased Documentum and Legato (see EMC Swings Into Software Big Leagues). EMC will operate VMware as a subsidiary. VMwares president and CEO Diane Greene will stay on to run the VMware division in Palo Alto.
Howard Elias, EMCs executive VP of corporate marketing, says the companies are a good fit despite one being storage-oriented and the other server-oriented.
From the customer view, were both infrastructure providers, he says. Customers want to provision and manage applications through the entire enterprise.
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IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
