Cisco Moving into the Server Market

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nekollx

...bundle networking hardware and virtualization software from Cisco and
VMware, the latter of which Cisco owns close to a 2 percent stake.

 

wow a whopping 2%?

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ddimick

A "whopping" 2% is 7.8 million shares currently valued at $164 million. So yeah, it's probably enough to get the VMWare engineers to make sure their stuff works on Cisco's hardware platforms, even if they weren't interested in bundling their products together just to capture additional revenue.

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nekollx

but come on its still less then 2% thats seems a bit insignificent a note. Even if the numbers seem big to us imagine what the numbers are for another company with a 5% share

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ddimick

This stuff isn't at all hard to research.

Cisco is the third largest corporate shareholder after EMC, who owns a majority stake (and is a significant Cisco partner), and Intel, who owns only slightly more than Cisco. The rest of the major shareholders are investment funds from companies like Fidelity and UBS.

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nekollx

and a 'major' share holder is less then 2% it just seems irelevent to mention a less then 2% share...

 

unless thats a typo of course...

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ddimick

What I'm trying to tell you is that 2% IS a large stake in a company the size of VMWare. It might not seem like it, but when you consider how many shares there are and how many different people and organizations own them, even 1% is a big deal. Including all types of all shareholders, Cisco is #6. Numbers 2-4 are asset management (e.g. 401k) holdings.

When VMWare is making major decisions, Cisco gets a seat at the table.

1. EMC Corp
2. UBS Global Asset Management (Americas), Inc.
3. Fidelity Management & Research
4. Fidelity Growth Company Fund
5. Intel Corporation
6. Cisco Systems

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