VMware to acquire virtual networking startup Nicira for $1.26 billion

By Leeky ยท 5 replies
Jul 24, 2012
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  1. VMware, a virtualization technology specialist announced on its official blog yesterday that it will acquire California-based networking startup Nicira for $1.26 billion, as the firm looks to further bolster its leading position in the virtual machine marketplace.

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  2. RajeGera

    RajeGera TS Rookie Posts: 50

    VmWare is the best to create VPs nad they certainly have the monopoly in the market.Its the good decision as Nicira's software is implemented with entirely different approach than VmWare and they have been getting good market in the industry.
  3. captainawesome

    captainawesome TS Guru Posts: 428   +44

    HOLY fricken crap. Is it just me or are these costs for company purchases getting out of hand?! One bil for Instagram now this.
  4. Leeky

    Leeky TS Evangelist Topic Starter Posts: 3,797   +117

    captainawesome I think it was a strategic move as well. If VMware hadn't purchased them, another major cloud player would have and technologies they have could have used to innovate will be used to put more pressure on them in the longer run.

    They've paid a heavy price, but the reward they will get in return for the innovation it can bring to their products will eventually give them a far greater return.
    captainawesome likes this.
  5. wujj123456

    wujj123456 TS Enthusiast Posts: 35   +11

    I swear their assets and talents are much more than Instagram. Instagram is just a consumer product after all (or more precisely, some random app), but these guys are working on big things in datacenters. That's true tech.
    captainawesome likes this.
  6. Upio

    Upio TS Rookie

    1 bil for Nicira is nowhere near as bad as 1 bil for Instagram. At least Nicira has valuable technology.

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