Citrix buys XenSource to expand virtualization wares

Citrix’s close relationship with Microsoft could help Microsoft make up ground on VMware

Citrix Systems agreed to acquire XenSource today in a deal valued at US$500 million (AU$611 million).

The recently rumored deal will let Citrix enter the server and desktop virtualization markets, long dominated by VMware, who went public yesterday and whose shares are trading at US$51 at the close of trading.

Investment banking firm Jefferies & Company issued a report Tuesday on Citrix titled "Citrix-Xen Makes Perfect Strategic Sense." The company says Citrix's close relationship with Microsoft -- the two have worked together for years on thin-client technology -- is key in that Citrix could help Microsoft make up ground on VMware, whose successful IPO on Tuesday confirmed its leadership role in the emerging virtualization market.

XenSource commercialized the open source Xen virtualization hypervisor with its founding in December 2004. The company recently introduced a version of its software XenEnterprise that rivals VMware's Virtual Infrastructure 3 in functionality.

The acquisition will let Citrix deliver technologies that make the computing environment more flexible and dynamic to business change. It will also strengthen Citrix' position in the Microsoft Windows market.

"We will be building dynamic virtualization services and management tools on top of the Viridian base," says Peter Levine, CEO of XenSource. "You can think of Viridian as the open source proxy of the Xen hypervisor. When Viridian comes out we will build the same type of products we have done on the Xen hypervisor." XenSource has already hired a team based in Redmond, Washington, to work with Microsoft on Viridian.

XenSource will become part of the newly formed Virtualization & Management Division at Citrix. The company will continue to promote the Xen open source community, led by XenSource co-founder Ian Pratt.

Citrix will combine the capabilities of XenEnterprise with the Citrix Desktop Server. The company intends to also incorporate XenEnterprise capabilities with its Citrix EdgeSight monitoring software, Citrix Access Gateway security software and Citrix WANScaler application delivery platform. To enhance its virtualization capabilities, Citrix will also add XenEnterprise functionality to the operating streaming and provisioning capabilities from its recent acquisition of Ardence.

XenSource claims over 650 customers.

In 2008, Citrix expects XenSource to generate revenue of US$50 million. The deal is expected to close in the fourth quarter.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Deni Connor

Network World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?