VMWare Snatches Zimbra from Yahoo

Paul Lilly

VMWare this week announced it has entered into a definitive agreement to acquire Zimbra from Yahoo. Zimbra specializes in email and collaboration software.

"Over the coming years, we expect more organizations, especially small and medium size businesses, to increasingly buy core IT solutions that deliver cloud-like simplicity in end-user and operational experience," said Brian Byun, VP and GM, Cloud Services, VMWare. "Zimbra is a great example of the type of scalable 'cloud era' solutions that can span smaller, on-premise implementations to the cloud."

In short, VMWare's interest in Zimbra stems from wanting help in selling cloud-computing services to businesses. At the same time, VMWare stated it plans to support existing Zimbra products and open-source projects.

Financial terms of the deal were not disclosed, although it's believed VMWare paid far less than the $350 million Yahoo spent acquiring the company in September 2007.

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