The stock market was taking a severe beating today except I notice that VMware (VMW) was trading over $100 per share for an increase today of around 2% when I checked and started this post. I found that to be interesting and starting looking for a possible reason why.
VMware has been very busy lately and continues to grow financially year after year. At the end of the first quarter of 2011 VMware’s revenue was up 33% already. This leaves VMware with somewhere around $1.3 billion in cash to help broaden its overall appeal to investors as well as to market VMware’s vision of the cloud.
VMware has acquired one more company: Shavlik. This acquisition did not come as much of a surprise to me but is an interesting purchase for VMware. There are quite a few Security as a Service vendors that would make sense for VMware to purchase and Shavlik is one of them. The difference between the other vendors and Shavlik is that VMware has a existing track record with Shavlik as Shavlik is integral in two of VMware’s existing products: VMware Go and VMware Update Manager. Shavlik provides a very important patch management system for these existing products and is one line of defense in the security space. Are there other plans for Shavlik? Or this is a way to lock in one set of tools?