Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud
    • Networking
    • Storage

    EMC to Sell 10% of VMware in IPO

    By
    Chris Preimesberger
    -
    February 7, 2007
    Share
    Facebook
    Twitter
    Linkedin

      Data storage giant EMC revealed Feb. 7 that it intends to sell approximately 10 percent of its rapidly growing VMware subsidiary through an initial public offering of newly issued VMware stock.

      EMC will retain ownership of the remaining 90 percent of VMware. President and CEO Joe Tucci said in a conference call that the Hopkinton, Mass., corporation has no intention of spinning out or otherwise divesting this ownership interest. The IPO will be held this summer, he said.

      “VMware is a precious asset to EMC,” Tucci said. “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.”

      VMware is the global marketshare leader in software for industry-standard virtualized desktops and servers and is currently a wholly owned subsidiary of EMC.

      /zimages/6/28571.gifClick here to read more about EMCs business strategy for 2007.

      VMware 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, Diane Greene, VMwares president and EMCs executive vice president, said during the call.

      “We expect that the IPO will help us execute on our vision of an industry standard virtual infrastructure,” Greene said. “It should enable us to accelerate our ability to find and attract great people, continue to invest in great product development and grow an even stronger partner ecosystem.”

      VMwares products have saved organizations of virtually all sizes and industries millions of dollars in hardware and operational expenses, power and cooling costs, and reduced downtime expenses, Greene said.

      David Goulden, executive vice president and chief financial officer for EMC, said the proceeds from the transaction are expected to provide VMware with the financial resources it needs to “achieve its full growth potential.”

      The IPO is also expected to provide EMC with the potential to return a portion of the original investment in VMware to EMC shareholders, “while enabling it to retain majority ownership in this strategic EMC business,” Goulden said.

      The IPO is not expected to have a material impact on EMCs 2007 business outlook, Tucci said. VMware will be a publicly traded entity upon completion of the transaction. Tucci and Greene are expected to be named to VMwares board of directors, a company spokesperson said.

      /zimages/6/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis on enterprise and small business storage hardware and software.

      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×