Brief: EMC completes VMware deal

VMware will retain its name and operate as an EMC subsidiary

EMC Corp. today completed its $625 million purchase of VMware Inc., which will retain its name and operate as a subsidiary of the Hopkinton, Mass.-based storage vendor.

The acquisition, announced last month (see story), gives EMC access to VMware's virtualization technology, which allows users to run multiple operating systems on Intel-based servers. VMware will continue to be led by Diane Greene, the firm's former president and CEO, EMC said in a statement.

In today's announcement, EMC officials said VMware will retain its own brand and products. Moreover, EMC officials in interviews last month said they intend to increase research and development spending at the subsidiary.

EMC plans to integrate VMware's virtualization capabilities in its storage products. Analysts believe the EMC acquisition will also help VMware battle Microsoft Corp. in the years ahead as the software giant develops and deploys the virtualization technology it acquired with Connectix Corp. early last year.

Copyright © 2004 IDG Communications, Inc.

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