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February 24, 2010

VMware to acquire certain IT management business products from EMC

To expand VMware vCenter management product family

By CBR Staff Writer

Vmware and EMC have entered into a definitive agreement for VMware to acquire certain software products and expertise from EMC’s Ionix IT management business, including offerings aimed at delivering improved management and deployment of servers and applications in a virtualised data centre.

The all-cash transaction of up to $200m is expected to close in the second calendar quarter of 2010, and is not expected to have a material impact on either EMC’s or VMware’s previous expectations for 2010.

Under the terms of the agreement, VMware will acquire all technology and intellectual property of FastScale, Application Discovery Manager, Server Configuration Manager and Service Manager and will maintain engineering, marketing, sales and support operations in the US, Europe, Israel, India and Australia. EMC will retain the Ionix brand and have full reseller rights to continue to offer customers the products acquired by VMware.

The acquired EMC products and expertise is expected to complement existing VMware development efforts and expand its vCenter product family with capabilities to meet compliance standards in a dynamic virtualised environment.

Paul Maritz, president and chief executive officer of VMware, said: Customers are increasingly leveraging virtualisation as the foundation for modern IT architectures and their path to cloud computing.

Essential to this evolution is the ability to provide visibility and compliance from virtualised applications down to the underlying physical infrastructure. The acquisition of these Ionix products and expertise promises to further establish VMware vCenter as the next generation management platform for private cloud infrastructures.

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