Reinforcing its status as the software darling of the moment, VMware has secured a whopping $219m investment from Intel. Intel will pay $23 per share for close to 10 million shares in the virtualization software maker, giving it a 2.5 per cent stake in all the outstanding common stock. In addition, Intel's deep pockets have …
Microsoft are locked in a software box
while ESX sits on bare metal. MS can't do what ESX can, so they're giving it away, and VMware have answered with VMplayer.
The only ground Microsoft have left to gain in virtualisation is application virtualisation. They should be positioning towards SoftGrid instead - that's their one offering that sounds like a killer app
Control the competition
VMware threatens Intel's sales because it promotes server consolidation. Higher CPU usage under VMware = lower sales of Intel processors. Having a seat on the board helps Intel better assess the direction of the industry. This is cheap insurance for Intel.
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