arstechnica.com — Intel and VMware announced today that Intel Capital is taking a $218.5 million stake in virtualization company VMWare. Intel will purchase 9.5 million Class A shares at $23 per share, which, at the completion of VMware's forthcoming IPO, will give Intel about a 2.5 percent stake in the company.
Jul 9, 2007 View in Crawl 4
brodelJul 10, 2007
I wish I could buy some VMWare stock. Their stuff is awesome. We run ESX 3.0.1 where I work and when I got there I hadn't even heard of ESX I had only used the VMWare workstation stuff which I thought was cool, but after learning about ESX that was on a level all on it's own. We had some RAM go bad on a server where about 10 or so servers were being hosted on and the server went into maintenance mode and moved all of the guest servers off of itself onto other servers (spread evenly with load in mind) and we didn't even notice it until one of us saw the alert it sent us. No users called saying this or that was down.. nothing. That just kicks ass.
justramJul 10, 2007
VMWare is one major player in the visualization industry, Intel buying shares seems like a low kick to AMD
yoyoverizonJul 10, 2007
no, this is "common sense", but false. Once you give people the ability to drive more IT services with the same budget, you get a net increase in IT value not in decreased servers. The conversations usually start with, oh wow I can cut my server budget in half and when its purchased end up like: wow, i can support 300 os images with my current servers
kevnacaJul 10, 2007
they are obviously a huge company. their windows virtual clients are the best out there. Parallels is playing catch up.
leogodin217Jul 10, 2007
I would say less processors as in fewer boxes. However, more expensive processors that have a hight profit margin. Virtualization requires better processors. So instead of buying 100 boxes with moderate processors, someone may buy 50 boxes with processors that have 3 times the profit margin of the mid range processors.
finezapaJul 10, 2007
INTEL buying VMWARE stock is the same thing as Microsoft buying stock in Apple. The more popular VMWARE [virtualization in general] becomes, the fewer hardware components (ie. processors) are sold. This way, INTEL can STILL make money from their losses to the VM industry.
driya2000Jul 10, 2007
Anybody in the business knows that Intel Capital is a major venture capital firm that has invested billions into early-stage industries.Any strategic advantages are just icing on the cake.
godzilla808Jul 10, 2007
Yeah, but Intel might sell more higher-end processors--meaning more expensive. Anywho, virtualization will continue to increase whether Intel likes it or not, so the smart move is to join them not try to beat them.