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VMware Puts Squeeze on Red Hat with SpringSource Buy

Article Source The Open Road
August 10, 2009, 3:41 pm

I've been writing a lot lately about SpringSource, largely because it has demonstrated a big vision (nothing less than the redefinition of the application server and an end-to-end application story), and so I wasn't terribly surprised today to see VMware buy SpringSource for $420 million. On roughly $20 million in sales, much of that services, it's a rich valuation, but one that is absolutely deserved given SpringSource's potential.

In fact, it's almost certain that SpringSource sold too early, at least as measured the size of potential exits it could have had given a bit more time. Like Zimbra before it, SpringSource had unbounded potential to shake up the application server and development market...

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