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Summary:

Unless you’re an information technology manager or a Wall Street banker still drooling over VWware’s $32 billion market cap, virtualization is not sexy. But it soon might be, with VMware’s agreement to buy desktop virtualization startup Thinstall. Bringing virtual software to the desktop for employees and […]

Unless you’re an information technology manager or a Wall Street banker still drooling over VWware’s $32 billion market cap, virtualization is not sexy. But it soon might be, with VMware’s agreement to buy desktop virtualization startup Thinstall. Bringing virtual software to the desktop for employees and consumers effectively makes the portable desktop a reality.

Yes, I know web applications and software as a service can make applications portable, but I’m talking about replicating your enterprise applications on a thumb drive, plugging that into a home or remote computer, working on something, saving it, and then bringing it back to the office. Thinstall enables that entire process; it also offers as a version of what the tech world used to call thin-client computing. Virtualization has more cachet, though.

For VMware, this deal pushes them deeper into the software side of virtualization, which is good considering the company’s dominant market share on the sever side. To feed that huge market cap, VMware needs to grow, so buying Thinstall is a logical step. The move also follows on the heels of VMware’s purchase of small independent software integrator Propero. The company will likely make additional buys to stay ahead of its competition.

As for the competition, it’s not standing still. Last summer Citrix bought server virtualization company XenSource for $500 million; Microsoft purchased desktop virtualization provider Softricity the year before. Today’s move by VMware may put Thinstall competitors such as Endeavors Technologies Kidaro, and InstallFree in play.

  1. [...] Higginbotham has more, listing Endeavors Technologies Kidaro, and InstallFree as Thinstall competitors. Tagged [...]

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  2. Just to clarify: VMWare acquired Propero Limited, a Virtual Desktop Infrastructure company, not Prospero, a leading white-label, hosted social media application provider.

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  3. Carolyn Pritchard Tuesday, January 15, 2008

    Colin, thanks for pointing out that typo — fixed now.

    best, Carolyn

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  4. The market cap of VMW is now 30 billion. EMC is 34 billion. It is amazing that the market did not value EMC at closer to 60 billion before VMW was separated from EMC. It just goes to show how much the street likes faster growers. VMW growth has been robust. EMC has been a bit slow of late.

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  5. [...] and other client-server “solutions” such as application streaming. When VMware purchased Thinstall earlier this month it gave the entire desktop virtualization category some cachet. [...]

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  6. [...] may well be considered non-sexy in some parts , VMWare’s announcement that it is set to acquire Thinstall , a San Francisco-based desktop [...]

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  7. [...] spent $1 billion buying open source database guru MySQL) and virtualization (think VMWare’s buy of Thinstall in January), are plenty good, especially given that Citrix paid $500 million for open [...]

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  8. [...] spent $1 billion buying open source database guru MySQL) and virtualization (think VMWare’s buy of Thinstall in January), are plenty good, especially given that Citrix paid $500 million for open [...]

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  9. [...] recently acquired MySQL and Innotek (makers of VirtualBox, the open source VMware) SUN is clearly reading the tea leaves and can see [...]

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  10. [...] so I don’t know what will happen to Xen support after the deal closes. VMware has been an active buyer of virtualization startups in the last year. While it holds a huge lead over other competitors, it’s good to see it [...]

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