VMware buys management software from parent EMC

One of the stranger acquisitions in the technology industry thus far this year...

VMware, which is owned by EMC, is acquiring a portion of EMC's software business, in what has to be one of the stranger acquisitions in the technology industry thus far this year.

VMware is paying up to $200 million to parent company EMC to acquire several software product lines from EMC's Ionix IT management business, in a move that may be indicative of growing integrations between the two companies. EMC purchased VMware in 2004 and has largely allowed it to be run as an independent entity, but their relationship has been a source of friction.

Former VMware CEO and co-founder Diane Greene long argued that the virtualization company needed to maintain independence so it could cultivate partnerships with other IT companies, including EMC's rivals in the storage market. EMC still allows VMware to partner with competing storage vendors, but fired Greene in July 2008 in a move apparently caused by rifts between Greene and the EMC leadership. Greene was replaced by former Microsoft executive Paul Maritz.

An EMC executive indicated that Thursday's transaction would have been less likely to happen if Greene were still VMware's CEO. When asked if negotiations between the companies were difficult, Jay Mastaj, general manager of EMC's Ionix division, said "Let's put it this way: It was a hell of a lot easier than when Diane was here."

EMC and VMware revealed the Ionix news in a press release that treated the deal as if it were a standard transaction, not mentioning the fact that EMC is VMware's majority owner. The transaction, all cash, is expected to close between April and June.

Specifically, VMware will take control of EMC software products FastScale, Application Discovery Manager, Server Configuration Manager and Service manager, and take on some engineering, sales and other personnel from EMC.

EMC will retain the Ionix brand, the remaining Ionix products and maintain the right to resell the products acquired by VMware.

With the Ionix management products in tow, VMware will be better able to manage and deploy servers and applications in virtualized data centers, the companies said.

"This will help them accelerate the work they're doing in the vCenter [management suite] and give them a foundation for building the data center of the future, and being able to manage that," Mastaj said.

Although EMC isn't pulling out from the IT management market, dishing off some of its assets to VMware could be seen as acknowledgement that EMC isn't likely to break into the top tier dominated by BMC, CA, HP and IBM.

"We're winning as many as we're losing, but we don't have the market share that the Big Four have," Mastaj said.

Follow Jon Brodkin on Twitter: www.twitter.com/jbrodkin

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.

Tags virtualisationemc

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jon Brodkin

Network World
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Family Friendly

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Stocking Stuffer

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Teac 7 inch Swivel Screen Portable DVD Player

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?