Cisco Systems will acquire an equity stake in VMWare as part of its plan to grow its base of customers who use VMware virtualisation products in conjunction with Cisco networking infrastructure
Cisco will purchase US$150 million of VMware Class A common shares currently held by EMC Corporation, VMware’s parent company, comprising a 1.6 percent stake in itstotal outstanding common stock.
VMware has agreed to consider the appointment of a Cisco executive to VMware’s board of directors at a future date.
In addition, VMware and Cisco have entered into a collaboration agreement to expand cooperative efforts around joint development, marketing, customer and industry initiatives.
The companies intend to use the relationship to develop new solutions for enhanced datacentre optimisation, and to broaden its target market outside datacentres to include remote offices and end-user desktops along.