Cisco Takes Stake In VMware Competitor

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Cisco bought a 1 percent stake in virtualization software specialist Parallels, the companies confirmed this week.

Financial terms were not provided, but in addition to an equity investment, Cisco and Parallels are expanding their joint development, marketing and industry initiatives.

“In collaboration with Parallels, we are focused on offering a more efficient and easier-to-use cloud services delivery model for service providers. We are particularly excited about Parallels' global presence -- including its operations in Russia -- which affords Cisco a continued opportunity to fuel innovation there and around the world," Hilton Romanski, Cisco vice president, corporate development, said in a statement.

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Several news outlets reported that Cisco also will get a seat on Parallels' board.

Founded in 1999, Paralells goes head to head with VMware in the Mac desktop virtualization segment, and sells automation and server virtualization software.

Cisco also has a small stake in VMware, whose majority owner is EMC. Cisco is tightly allied with both companies, although a series of recent moves made by each -- including VMware's $1.2 billion acquisition of software-defined networking startup Nicira -- have made them competitive.


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