Friday, July 27, 2007

Cisco Invests In VMware

San Jose-based networking giant Cisco, and virtualization software provider VMware, Inc. said Firday morning that Cisco Systems is acquiring an equity stake in the firm. Cisco said it will purchase $150M of VMware Class A common shares from EMC Corporation, approximately 1.6 percent of VMware. VMware also said that it has agreed to consider the appointment of a Cisco executive to VMware's board of directors at a future date. The investment by Cisco follows a similar, strategic investment by Intel earlier this month. VMware is on deck for an IPO which will spin off the firm from EMC Corporation.