VMware to Play Bigger Role in the Cloud

by Sonal Desai    Aug 11, 2009

In a move which can benefit the developer community and boost the use of open source, VMware yesterday signed a definitive agreement to acquire SpringSource for more than $400 million.

VMware, a global player in virtualization solutions in desktop, datacenter and cloud, yesterday entered into a definitive agreement to acquire privately-held SpringSource, a player in enterprise and Web application development and management. 

The two vendors plan to deliver new solutions that enable companies to build, run and manage applications within both internal and external cloud architectures.

SpringSource is the front-runner in pushing lean enterprise software paradigm and many enterprises use its services to design and deploy Java. Moreover, it also contributes, maintains and manages the Apache Tomcat server. On the tools side, it has also been supporting and maintaining communities of Groovy, Grails, and Hyperic.

The last four quarters have been not-so-good for VMware, with revenues falling and IT spending slowdown. SpringSource acquisition brings it now to the center stage of open source arena. Community maintenance revenues are additional resources and allow VMware to play more central role in the cloud environment, said T. R. Madan Mohan, managing partner at Browne and Mohan.

He said that VMware will continue to play the open source way to exploit open innovation model for Apache, Hyperic communities. It has already announced its intention to keep the open source principles in place.

For a CXO, it would now mean a single vendor to handle, build and manage enterprise class Java deployments and virtualization; and hence lesser transaction cost.

User industries with heterogeneous environments and moving towards hosted models would find virtualization, cloud management and performance completely handled by VMware. Banking, manufacturing and telecom would be the major verticals to benefit from the acquisition. Bharti Airtel, managed service players such as Netmagic, Allied Digital, and Anantara would be some of the customers to welcome this move.