|By Virtualization News||
|August 20, 2007 07:15 AM EDT||
It's paying about $500 million in cash and stock (60-40), a pricey number not all that different from the $635 million that EMC paid for VMware early in '04. But considering it's for an open source start-up not yet three-years-old with 80 people and under $5 million in annual revenues, it's rich.
The price includes the assumption of about $107 million in unvested stock options to hold people and the deal will result in an $8 million-$10 million write-off for in-process R&D.
Obviously Citrix expects the merger to move it and its thin client-style software, which reflects applications running on the server onto the desktop - a specialty under pressure by virtualization - into the adjacent server and desktop virtualization game, calculated to grow to nearly $5 billion over the next four years, and put maybe 30 million office workers on virtual desktops in the next five years.
That being the case, Citrix expects XenSource to advance its own application delivery business by adding key enablers that push to virtualize the logic and data tiers of applications. It's promising to make the solutions cheaper and less complicated.
Citrix figures the acquisition strengthens its partnership with Microsoft. See, XenSource, which works on Windows, has access to Microsoft's hypervisor virtualization widgetry, code named Viridian and due out in 3Q08.
And Citrix did manage to wheedle a ra-ra quote from Microsoft senior VP, servers & tools Bob Muglia for its announcement. Maybe that means Microsoft will use some of Xen in Viridian or, according to The 451 Group's musings, maybe just up and buy Citrix.
The 451 folks figure Viridian becomes the "base operating system for its next business," as it borrowed from Microsoft to start its original business, and "save a couple of years development time by buying XenSource to get into the virtualization market."
The acquisition of XenSource and its 650 customers, a number that reportedly doubled in the last 90 days, is supposed to close in Q4. Citrix then intends to create a Virtualization & Management Division to house it led by XenSource CEO Peter Levine. He will report to Citrix president and CEO Mark Templeton.
In a canned quote, Levine said, "This move is not about competing for the 5% of the market that is already being served. It's about steering into the 90% white space that is wide open, both at the server and in the new emerging opportunities at the desktop."
The shiny new rev of XenSource's version of Xen, XenEnterprise 4, due to ship on August 20, adds mobility, monitoring and storage integration and 64-bit support good for SQL and Exchange 2007. It can now handle physical systems with 128GB of memory and offer guest operating systems 32GB of space, accommodating a physical CPU limit of an eight-way server, better than what VMware can manage.
When the new cut was announced Monday, XenSource was already thinking about melding it with Citrix' Desktop Server and about helping Citrix Desktop Server deliver desktops from the data center as a secure on-demand service.
Citrix intends to push XenSource through its 5,000 channel partners and leverage its relationships with server and data center infrastructure folks, like Symantec with its Veritas storage interests, to create additional routes to market through OEM sales channels.
Citrix says it will continue to contribute to the Xen open source project that's led by XenSource co-founder Ian Pratt but between now and when the deal closes, they're going to try to develop procedures for independent oversight of the project. Both Novell and Red Hat include Xen.
Citrix said the acquisition will add $1 million in revenue and roughly $3 million in cost revenue and operating expenses to its 2007 fiscal year and $50 million in revenue and $60 million-$70 million in total cost of revenues and operating expense to its 2008 fiscal year.
XenSource was backed to the tune of $41.5 million by Sevin Rosen, Ignition Partners, New Enterprise Associates, Accel Partners and Kleiner Perkins, a prestige lot.
VMware has been awarded 85% of the market and then there's Virtual Iron.
|Citrix News Desk 08/18/07 04:13:56 PM EDT|
The day after the great VMware IPO Tuesday, supposedly the hottest thing since Google went public, Citrix, a Microsoft camp follower with the scars to prove it, said it's acquiring VMware's open source commercial competitor, XenSource Inc, the company that developed Xen's chi-chi hypervisor. It's paying about $500 million in cash and stock (60-40), a pricey number not all that different from the $635 million that EMC paid for VMware early in '04. But considering it's for an open source start-up not yet three-years-old with 80 people and under $5 million in annual revenues, it's rich.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Jun. 29, 2016 07:00 PM EDT Reads: 420
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 29, 2016 05:30 PM EDT Reads: 1,029
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Jun. 29, 2016 04:15 PM EDT Reads: 428
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jun. 29, 2016 04:15 PM EDT Reads: 406
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
Jun. 29, 2016 04:00 PM EDT Reads: 356
UAS, drones or unmanned aircraft, no matter what you call them — this was their week. Our news stream was flooded with updates on the newly announced rules and regulations for commercial UAS from the FAA. So, naturally we have dedicated this week’s top news round up to highlight some of our favorite UAS stories.
Jun. 29, 2016 03:02 PM EDT Reads: 274
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 29, 2016 03:00 PM EDT Reads: 357
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Jun. 29, 2016 02:00 PM EDT Reads: 384
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jun. 29, 2016 02:00 PM EDT Reads: 654
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jun. 29, 2016 01:15 PM EDT Reads: 345
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Jun. 29, 2016 12:30 PM EDT Reads: 557
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
Jun. 29, 2016 11:00 AM EDT Reads: 516
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jun. 29, 2016 11:00 AM EDT Reads: 481
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Jun. 29, 2016 11:00 AM EDT Reads: 591
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Jun. 29, 2016 10:45 AM EDT Reads: 562
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jun. 29, 2016 10:30 AM EDT Reads: 510
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 29, 2016 10:00 AM EDT Reads: 1,298
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 29, 2016 09:45 AM EDT Reads: 1,259
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 29, 2016 09:45 AM EDT Reads: 946
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 29, 2016 09:15 AM EDT Reads: 1,461