VMware and SpringSource – Why Bother?

Monday saw the rather surprising announcement that VMware is acquiring SpringSource for about $420m all in. After the initial shock wore off, the next question had to be: Why bother acquiring SpringSource in the first place? According to the press release:

VMware and SpringSource plan to deliver compelling new solutions that enable companies to more efficiently build, run and manage applications within both internal and external cloud architectures.

So VMware is going to attempt to use SpringSource’s code to virtualize application deployments and management. Given Spring’s hooks into several application frameworks, it’s certainly possible but by no means guaranteed.

With a recent stock downgrade (from Buy to Underperform), VMware has to make something happen quickly to justify spending over $400m for glorified middleware.

VMware shares are down just over 2% today.

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One Response to "VMware and SpringSource – Why Bother?"

  1. Hmm,

    Take a look at this:
    http://finance.yahoo.com/echarts?s=VMW+Interactive#symbol=VMW;range=1y

    I am hitting myself on the head for not buying their stock.

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