VMware Completes Acquisition of Zimbra

PALO ALTO, Calif., February 16, 2010 — VMware, Inc., (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter and to the cloud, today announced the completion of its acquisition of Zimbra^®, the leading vendor of next-generation, open source email and collaboration software, from Yahoo! Inc.. VMware announced the signing of its definitive agreement to acquire Zimbra on January 12, 2010. 

Zimbra joins VMware’s Cloud Services organization, whose charter is focused on meeting increasing customer demand for more public and private on-premises cloud computing services delivered through VMware’s innovative virtualization platform. 

“The addition of Zimbra to our VMware vCloud offering brings small and medium size businesses as well as larger organizations a leading, email, calendaring and collaboration service paired with the flexibility and choice of private on-premise or public cloud deployments,” said Brian Byun, Vice President and General Manager, Cloud Services, VMware.  “This addition moves us forward in our mission to simplify the complexity of IT for customers of all sizes.”
VMware will support existing Zimbra products, including Zimbra Collaboration Suite and Zimbra Desktop, as well as its open source community. Zimbra will also be more deeply integrated with VMware vSphere™-based cloud infrastructure, alongside Microsoft, IBM and other messaging and collaboration solutions.  VMware will also increase investment in Zimbra to accelerate the product roadmap and build on Zimbra’s record growth that has made it one of the world’s largest email and collaboration providers with over 55 million paid mailboxes added in just five years.

“We are thrilled Zimbra is part of VMware because they are our two absolute favorite technologies,” said Jason Whitaker, Director of Information Technology, Transylvania University.  “We recently moved our entire campus from a legacy email system to Zimbra on VMware.  We now have a modern collaboration platform in an ultra-reliable environment running on half the servers as before.”

About VMware

VMware delivers solutions for business infrastructure virtualization that enable IT organizations to energize businesses of all sizes.  With the industry leading virtualization platform – VMware vSphere™ – customers rely on VMware to reduce capital and operating expenses, improve agility, ensure business continuity, strengthen security and go green. With 2009 revenues of $2.9 billion, more than 170,000 customers and 25,000 partners, VMware is the leader in virtualization which consistently ranks as a top priority among CIOs. VMware is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com

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VMware, VMware vCloud and VMware vSphere are registered trademarks and/or trademarks of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.  The use of the word “partner” or “partnership” does not imply a legal partnership relationship between VMware and any other company.

Forward –Looking Statements

Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to, momentum in our partner programs and in customer demand for our products, the role of our products in the future development of information technology and expectations for 2010. 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) failure to successfully integrate Zimbra’s technology, employees, business and operations into VMware’s business and operations; (ii) failure to successfully execute VMware’s cloud strategies; (iii) changes in macroeconomic conditions; [renumber] (ii) delays or reductions in consumer or information technology spending; (iii) 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; (iv) our customers’ ability to develop, and to transition to, new products, (v) the uncertainty of customer acceptance of emerging technology initiatives; (vi) rapid technological and market changes in virtualization software; (vii) changes to product development timelines; (viii) our ability to protect our intellectual property rights; and (ix) our ability  to attract and retain highly qualified employees.  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 periodic reports on Form 10-Q and Form 10-K and current reports on Form 8-K, which could cause actual results to vary from expectations. VMware disclaims any obligation to update any such forward-looking statements after the date of this release.