Intel Corporation

Intel Cuts VMware Stake In Half

November 4, 2008 by Robin Wauters Leave a Comment

While Cisco is increasing its stake in VMware, Intel is reducing it. The company plans to sell the bulk of those shares on Tuesday, according to a regulatory filing.

Intel disclosed that it had recently sold 1 million shares in the virtualization software maker and plans to sell another 3.75 million VMware shares on the open market “approximately” on Tuesday.

The chipmaker originally paid $23 per share for the stock in a private placement. VMware shares hit a record high of $125.25 on October 31, 2007, after going public in August that year at $29 per share.

Shares of VMware, which is majority-owned by EMC, fell nearly 4 percent before recovering to trade up 0.53 percent at $31.98 in morning trade on the New York Stock Exchange.

Cisco Ups Stake In VMware

November 2, 2008 by Robin Wauters 1 Comment

Cisco announced yesterday that it will acquire an increased equity stake in VMware.

Cisco will purchase 500,000 shares of VMware Class A common stock currently held by Intel for approximately $13.3M. Upon closing of the investment, Cisco will own approximately 1.7% percent of VMware’s total outstanding common stock.

Cisco’s purchase is intended to build on the strong inter-company collaboration between Cisco and VMware in the adoption of the companies’ virtualization products and solutions that address the intersection of virtualization and networking technologies.

In September, 2008, Cisco and VMware announced several joint initiatives in the data center virtualization market including the launch of the The Cisco Nexus® 1000V distributed virtual software switch, enhanced professional services and reseller certification training

Intel Picks Up NetEffect for $8 Million

October 15, 2008 by Robin Wauters Leave a Comment

Intel Corporation today announced its acquisition of the assets of NetEffect, a network connectivity solutions company specializing in Ethernet products and technologies for server compute clusters.

Intel purchased NetEffect’s assets for $8 million, which include the company’s Ethernet product portfolio, intellectual property and technology. NetEffect was a provider of solutions incorporating iWARP, an Ethernet alternative to InfiniBand. NetEffect’s product portfolio includes 1 Gigabit and 10 Gigabit Ethernet (GbE) adapters for servers and blade configurations as well as 10 GbE Application Specific Integrated Circuits (ASICs).

Designed for multi-core processor-based servers and optimized for virtualization, Intel’s current portfolio of 10GbE server adapters includes single and dual port versions for both copper and fiber implementations. The NetEffect acquisition provides complementary High Performance Network Interface Card (NIC) products to Intel’s Ethernet portfolio.

NetEffect was founded in 1998 as Banderacom, a company focused on InfiniBand adapters and 16-port IB switch, and was recapitalized in 2004 as NetEffect. Thirty employees, primarily engineers, have joined the Intel team from NetEffect and will continue to be based in Austin, Texas.

Intel