|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 is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
Dec. 17, 2014 11:15 PM EST Reads: 1,210
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 17, 2014 11:00 PM EST Reads: 1,285
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 17, 2014 08:00 PM EST Reads: 1,255
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Dec. 17, 2014 06:30 PM EST Reads: 1,144
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 17, 2014 06:00 PM EST Reads: 1,110
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Dec. 17, 2014 11:45 AM EST Reads: 1,399
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Dec. 16, 2014 11:45 PM EST Reads: 1,231
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
Dec. 15, 2014 11:45 PM EST Reads: 1,613
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Dec. 15, 2014 10:30 AM EST Reads: 6,842
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...
Dec. 15, 2014 10:00 AM EST Reads: 1,931
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Dec. 15, 2014 10:00 AM EST Reads: 1,598
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
Dec. 15, 2014 09:00 AM EST Reads: 1,600
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
Dec. 15, 2014 09:00 AM EST Reads: 1,419
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
Dec. 15, 2014 08:45 AM EST Reads: 2,007
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 15, 2014 08:15 AM EST Reads: 2,697
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
Dec. 15, 2014 06:45 AM EST Reads: 2,144
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
Dec. 15, 2014 04:00 AM EST Reads: 1,384
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
Dec. 12, 2014 05:00 PM EST Reads: 1,251
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Dec. 11, 2014 06:00 PM EST Reads: 1,452
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Dec. 11, 2014 03:15 PM EST Reads: 1,914