|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.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Dec. 8, 2016 02:45 AM EST Reads: 1,276
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Dec. 8, 2016 01:45 AM EST Reads: 1,404
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 8, 2016 12:30 AM EST Reads: 1,113
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 8, 2016 12:15 AM EST Reads: 1,333
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 11:45 PM EST Reads: 1,004
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 7, 2016 10:30 PM EST Reads: 861
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 10:00 PM EST Reads: 1,194
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 7, 2016 08:15 PM EST Reads: 2,216
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 7, 2016 05:15 PM EST Reads: 936
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 7, 2016 05:15 PM EST Reads: 1,760
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 7, 2016 04:30 PM EST Reads: 1,683
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Dec. 7, 2016 04:15 PM EST Reads: 404
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Dec. 7, 2016 03:45 PM EST Reads: 2,271
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 7, 2016 03:30 PM EST Reads: 1,790
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 7, 2016 02:30 PM EST Reads: 948
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 02:30 PM EST Reads: 4,325
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 7, 2016 02:15 PM EST Reads: 3,399
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 7, 2016 02:15 PM EST Reads: 1,143
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 7, 2016 02:15 PM EST Reads: 2,204
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 01:45 PM EST Reads: 1,135