VMware to buy email and collaboration vendor

Virtualisation software pioneer VMware is to branch out into email and collaboration tools with the acquisition of Zimbra, a provider of open source and web-based messaging software that is currently owned by web giant Yahoo!, as reported last week on the All Things Digital blog.

Zimbra’s email software "will be a building block in an expanding portfolio of solutions that can be offered as a virtual appliance or by a cloud service provider," said Brian Byun, VMware’s vice president for cloud services.

Yahoo! has reportedly been looking to offload Zimbra, which it acquired in 2007 for $350 million – a price described as ‘staggering’ at the time, as part of a scheme to reverse its ailing fortunes by divesting non-core properties.

Having been largely dominated by Microsoft’s Exchange product in past, the business email market has recently become the target of a number of new entrants. Google’s online email offering has gained some enterprise adoption, while networking giant Cisco recently announced its own forthcoming hosted email service.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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