VMware to Acquire Virsto

Mon Feb 11, 2013 4:04pm EST

* Reuters is not responsible for the content in this press release.

  PALO ALTO, CA, Feb 11 (Marketwire) -- 
VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud
infrastructure, today announced it has signed a definitive agreement to
acquire Virsto(R) Software, a Sunnyvale, Calif.-based provider of
software that optimizes storage performance and utilization in virtual
environments. 

    "VMware is committed to continuing to deliver software innovations that
bring significant efficiencies to our customers while simplifying
infrastructure and IT," said John Gilmartin, vice president of storage
and availability, VMware. "We believe that the acquisition of Virsto will
accelerate our development of storage technologies, allowing our
customers to greatly improve the efficiency and performance of storage in
virtual infrastructure." 

    Organizations are looking for solutions to address the increasing
complexity and cost of storage within virtual and cloud environments,
particularly for virtual desktop infrastructures (VDI), large software
development and test centers and to support business-critical
applications. Virsto provides breakthrough storage optimization
technologies that improve storage performance and utilization in these
environments. When implemented within a VDI, Virsto can reduce the cost
of storage per desktop by as much as 70 percent. 

    As part of its strategy to deliver the software-defined datacenter,
VMware continues to invest and innovate to extend the benefits of
virtualization to every domain in the datacenter -- compute, network,
storage and the associated security and availability services. VMware has
been at the forefront of innovations to storage in virtual environments,
and the acquisition of Virsto will expand VMware's storage portfolio,
which includes the storage virtualization and management capabilities of
VMware vSphere(R) and the VMware vSphere Storage Appliance(TM). In
addition, EMC Corporation plans to license the Virsto technology,
extending the cooperative efforts between the two companies in storage
architectures.

    "VMware and Virsto share a highly aligned vision to remove complexity and
increase efficiencies through virtualization," said Mark Davis, CEO,
Virsto. "We are excited to combine forces with VMware to provide
customers a more cost-effective, efficient, and agile storage
architecture."

    Terms of the acquisition were not disclosed. The acquisition is scheduled
to close in the first quarter of 2013 subject to customary closing
conditions.

    Additional Resources


--  Read VMware's John Gilmartin blog "VMware to Acquire Virsto Software"
    here
--  Read Virsto's Mark Davis blog "I Have a Dream" here
--  Connect with VMware on Twitter and Facebook

    

About Virsto
 Virsto(R) Software Corporation changes the economics
of storage in virtualized environments by improving utilization,
increasing performance, and accelerating VM storage provisioning. Virsto
reduces the cost and complexity of storage for VDI, test and development,
business-critical application virtualization, cloud computing and other
virtualization initiatives. Founded in 2007, Virsto is backed by leading
Silicon Valley venture firms. For more information, visit www.virsto.com. 

    About VMware 
 VMware is the leader in virtualization and cloud
infrastructure solutions that enable businesses to thrive in the Cloud
Era. Customers rely on VMware to help them transform the way they build,
deliver and consume Information Technology resources in a manner that is
evolutionary and based on their specific needs. With 2012 revenues of
$4.61 billion, VMware has more than 480,000 customers and 55,000
partners. The company is headquartered in Silicon Valley with offices
throughout the world and can be found online at www.vmware.com.

    VMware, vSphere, and vSphere Storage Appliance are registered trademarks
or trademarks of VMware, Inc. in the United States and other
jurisdictions. All other marks and names mentioned herein may be
trademarks of their respective companies.

    Forward-Looking Statements 
 This press release contains forward-looking
statements including, among other things, statements regarding the
consummation of the acquisition of Virsto, the planned integration of
Virsto technologies with VMware product offerings, plans to license
Virsto technology in conjunction with EMC Corporation and the prospective
benefits to customers. These forward-looking statements are subject to
the safe harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Actual results could differ materially from those
projected in the forward-looking statements as a result of certain risk
factors, including but not limited to: (i) the satisfaction of closing
conditions for the transaction; (ii) the successful integration of Virsto
and VMware technologies; (iii) adverse changes in general economic or
market conditions; (iv) delays or reductions in consumer or information
technology spending; (v) competitive factors, including but not limited
to pricing pressures, industry consolidation, entry of new competitors
into the virtualization market, and new product and marketing initiatives
by our competitors; (vi) our customers' ability to develop, and to
transition to, new products and computing strategies such as cloud
computing and desktop virtualization; (vii) the uncertainty of customer
acceptance of emerging technology; (viii) rapid technological and market
changes in virtualization software and platforms for cloud and desktop
computing; (ix) changes to product development timelines; (x) VMware's
ability to protect its proprietary technology; (xi) VMware's ability to
attract and retain highly qualified employees and (vii) the ability to
license Virsto technology on terms satisfactory to VMware and EMC. These
forward-looking statements are based on current expectations and are
subject to uncertainties and changes in condition, significance, value
and effect as well as other risks detailed in documents filed with the
Securities and Exchange Commission, including our most recent reports on
Form 10-K and Form 10-Q and current reports on Form 8-K that we may file
from time to time, which could cause actual results to vary from
expectations. VMware assumes no obligation to, and does not currently
intend to, update any such forward-looking statements after the date of
this release.

    

Contacts:
Eloy Ontiveros
VMware Global Communications
1.650.427.6145
eontiveros@vmware.com

Kayla Kooyman
The OutCast Agency for VMware
1.415.345.4765
kkooyman@theoutcastagency.com 

Copyright 2013, Marketwire, All rights reserved.

-0-