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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Deni Connor

Network World
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Family Friendly

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?