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Cisco bites off a piece of VMware

But $150 million buys you virtually nothing
Fri Jul 27 2007, 15:51
CISCO IS taking a stake in VMware, the hottest company in business software since Jesus got a decent ROI from some loaves and fishes.

It's paying a proper chunk of cash but these days $150 million only buys you a little bit of the master of the x86 virtualisation universe -- 1.6 percent to be precise. EMC cut one of the sweetest deals in tech history by picking up VMware for $625m in 2004. Today, the company is worth not much south of $10 billion.

Cisco sees the deal strengthening the bond between its networking kit and VMware's king-of-the-castle virtualisation programs. Even at that fat price it might also be a good investment since virtualise/consolidate is the mantra for every datacentre you know. µ


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