VMware buys Zimbra from Yahoo

VMware will buy Zimbra from Yahoo for an undisclosed sum of cash. The open-source email suite provides email, contacts, calendar, search, document collaboration and authoring and VoIP tools for corporations and businesses, including Digg, H&R Block and Comcast.

Under the terms of the agreement, it will also acquire all Zimbra intellectual property and technology, and will grant Yahoo a license to continue using the technology on its Yahoo Mail and Yahoo Calendar software.

VMware will optimise the products to work on vSphere-based cloud infrastructures, alongside optimising similar tools provided by Microsoft and IBM.

“Zimbra is a great example of the type of scalable ‘cloud era’ solutions that can span smaller, on-premise implementations to the cloud. It will be a building block in an expanding portfolio of solutions that can be offered as a virtual appliance or by a cloud service provider,” Brian Byun, Vice President and General Manager of Cloud Services, said.

“We are excited to welcome the Zimbra team and community to the VMware family.”

This was long rumoured, especially when news of the deal broke on WSJ’s All Things D blog; as Yahoo looked to slim down its portfolio – including offloading search to Bing and closing Geocities – and concentrate on the successful acquisitions and sites after when CEO Carol Bartz took over from Jerry Yang.

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