VMware gets a boost from Intel

VMware is likely feeling at least a little bit more competitive pressure this year, now that companies are getting more familiar with x86 server virtualization and with VMware’s competitors. Check out some of the discussions I’ve had with organizations slicing their x86 boxes with technology other than VMware here and here.

Last week, I talked about a good checklist for making sure you and your organization are ready to jump into the world of virtualization.

In making your decision about what type of server slicing technology to use, does the firm’s backing matter? Last week, it was announced that Intel plans to buy a $218.5 million stake in VMware, when the virtualization software firm goes public some time later this year. You can read the story here.

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VMware is likely feeling at least a little bit more competitive pressure this year, now that companies are getting more familiar with x86 server virtualization and with VMware’s competitors. Check out some of the discussions I’ve had with organizations slicing their x86 boxes with technology other than VMware here and here.

Last week, I talked about a good checklist for making sure you and your organization are ready to jump into the world of virtualization.

In making your decision about what type of server slicing technology to use, does the firm’s backing matter? Last week, it was announced that Intel plans to buy a $218.5 million stake in VMware, when the virtualization software firm goes public some time later this year. You can read the story here.

Intel’s interest in VMware is nothing new, of course. The two have had a relationship for some time. Intel’s chips now have virtualization technology built into the hardware that makes VMware’s (and other virtualization) software run even better.

But Intel’s decision to buy a $218.5 million share of VMware will help give the virtualization software firm a boost. Analysts say the news will make VMware more attractive to investors, since it’s always encouraging to have a big company like Intel betting on the same stock you are. It also means that Intel will take an even greater interest in how VMware’s technology is evolving when it comes to Intel-based systems.

That all translates into good news for VMware customers. EMC will continue to hold the majority stake in VMware with an 89% share, but what do you think of Intel’s cash infusion? Let me know.

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