COMMENT ON A TWEET #3

COMMENT ON A TWEET #3

Matt HealeyThursday,17 January 2013

The Snap:

Tweet: “@phayden: VMware’s purchase of Nicira is looking pretty good – especially with Juniper’s own #SDN strategy http://t.co/8AXfWdsY”

The Download:

The problem with VMWare’s purchase was the valuation. I think they paid too much, not Leo Appotecker too much, after all they did not spend 10% of their market cap on a software company with questionable accounting that would only contribute 1% of the revenue going forward. From a strategic point of view, the Nicira was a great acquisition. VMWare is already the defacto platform for x86 based data centers. With this acquisition, VMWare has the opportunity to extend the platform into DC networking. Combine this with the trend towards integrated systems, and the results for VMWare and thus EMC could be very positive. This is the reason that I am personally bullish on EMC, and am looking for a good entry point to buy the stock.

Hat Tips:

VMWareHP Autonomy Acquisition, Image Credit: Flickr

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