The storage giant reaffirms its original strategy of selling off 10 percent of its prized virtualization division in 2007.
Data storage market leader EMC reaffirmed that it will not reduce its 90 percent stake in its VMWare subsidiary for at least two years after a summer initial public offering, Chief Financial Officer David Goulden said May 16.
The Hopkinton, Mass.-based company previously had said that it would offer 10 percent of VMWare to the public via an IPO late in 2007.
VMware is the global marketshare leader in software for industry-standard virtualized desktops and servers and is currently a wholly owned subsidiary of EMC.
"Were obviously going to assess the situation down the road based on whats happening," Goulden said at the Reuters Global Technology, Media and Telecoms Summit in New York.
VMware, based in Palo Alto, Calif., had record sales in 2006, increasing revenues 83 percent during the year to $709 million. It finished the fourth quarter of 2006 with year-over-year revenue growth of 101 percent, delivering accelerated year-over-year growth for the fifth consecutive quarter.
"VMWare is a precious asset to EMC," EMC President and CEO Joe Tucci said on Feb. 7, when the company announced the IPO.
"We will retain control of VMWare, mainly for three reasons: We want to continue to unlock value for EMCs shareholders; we want to strengthen the retention of our employees at VMWare and be transparent about our relationship; and we want to reconfirm our commitment to VMwares platform-neutral approach to network infrastructure."
EMC bought VMWare in 2004 for $635 million. VMWare software enables large computers to run several operating systems at the same time, making it easier and less expensive to manage networks.
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Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz