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.
Just to clarify: VMWare acquired Propero Limited, a Virtual Desktop Infrastructure company, not Prospero, a leading white-label, hosted social media application provider.
Colin, thanks for pointing out that typo — fixed now.
best, Carolyn
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.