EMC-owned VMware will be 2.5% owned by Intel, after VMware completes its pending initial public offering. EMC will retain an 89% stake.
The investment would accelerate the adoption of VMware’s virtualization products on Intel architecture, according to the companies. And it would enable Intel to build chips that would be optimized for VMware’s software, they said.
In addition to jointly developing products, the pair said they also would work together on marketing them.
Intel and VMware are no strangers. Since late 2005, Intel has been selling computer chips that facilitate the virtualization of hardware using VMware applications.
As part of the deal, an exec from Santa Clara, California-based Intel would sit on the board of Palo Alto, California-based VMware.
The deal is subject to approval by US regulators.
Our View
While this is an Intel-VMware deal, all boats will likely rise with the virtualization-software tide. When Intel aggressively invests in an industry, it tends to stimulate other investments and, in turn, growth in that market. Seems the chipmaker sees the growing role virtualization software will play with the increasing adoption of its multi-core chips.
