VMware to Acquire Shavlik Technologies

PALO ALTO, CA--(Marketwire - May 16, 2011) - VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced that it has entered into a definitive agreement to acquire Shavlik Technologies, a leading provider of easy-to-use, effective cloud-based IT management solutions for small and medium businesses (SMBs). Shavlik Technologies provides a portfolio of on-premise and SaaS-based management solutions that enable SMBs to more effectively manage, monitor and secure their IT environments while addressing their unique needs when moving to virtual and cloud computing IT deployments. Financial terms of the acquisition were not disclosed. The acquisition is expected to be completed later this quarter, subject to satisfaction of customary closing conditions.

Today's announcement builds upon the successful relationship built between VMware and Shavlik via VMware GO™, a joint SaaS offering assisting SMBs with rapid deployment and management of VMware vSphere®.

"VMware continues to make investments to extend its leadership within the SMB market. With VMware vSphere® Essentials and VMware Go™, VMware is delivering tremendous value to hundreds of thousands of SMBs," said Raghu Raghuram, Senior Vice President and General Manager, Cloud Infrastructure and Management, VMware. "With the Shavlik acquisition, VMware will be able to provide simple to use and affordable management services developed to address the specific demands of SMBs."

"It is an exciting time for us to be joining VMware as it builds on our expertise in delivering IT solutions to SMBs, an area we have been dedicated to for many years," said Mark Shavlik, Chief Executive Officer, Shavlik Technologies. "The enthusiasm, creativity and operational excellence of our two companies will allow us to better serve our global customers and partners by accelerating IT management innovations."

VMware and Shavlik have proven track records in delivering easy-to-use, cost effective IT solutions that enable hundreds of thousands of SMBs to take advantage of modern, transformative IT models like virtualization and cloud computing, without requiring the skill and staff resources of larger enterprises. Together, the two companies will build upon this success with a complete portfolio for managing, monitoring and securing IT environments, offering SMBs:

• Centralized IT Management Services -- Enabling SMBs to manage core IT functions through a single pane of glass, centralizing asset management, security, business continuity and data protection capabilities.
• Simplified Deployment and Automation -- Enables SMBs to rapidly evolve existing systems to virtual and cloud models without requiring significant in-house skills or resources.
• Automated IT Management -- Delivering efficiency and automation to SMBs for core IT management functions, including patch management, compliance, configuration and more.

SMB Management for Service Providers and Solution Providers

SaaS-based management solutions from Shavlik will create a valuable portfolio of solutions for Managed Service Providers (MSPs) and Solution Providers to better serve their SMB customers. VMware intends to further extend the ability of MSPs to offer automated, remote management capabilities to SMBs seeking additional value-added capabilities via their existing business partners.

VMware GO

This acquisition will extend the successful relationship of VMware and Shavlik via the VMware GO offering. Available since 2009, VMware GO enables SMBs to rapidly deploy and onboard VMware vSphere with simplified installation and management, eliminating key hurdles to SMBs wanting to move their infrastructures to modern, agile virtualized and cloud models. VMware GO (www.vmwarego.com) has attracted over 200,000 registered users creating more than 20,000 VMware Hypervisors and 120,000 Virtual machines by offering:

• Wizard-based installation of free vSphere Hypervisor (ESXi) and basic IT management capabilities (patching, asset management)
• Core IT Management for servers, Virtual Machines and endpoints
• Automated asset management, patch and security capabilities
• Helpdesk and Trouble Ticketing for small business

About Shavlik Technologies

Shavlik Technologies, a global leader in simplifying the complexity of IT management, is dedicated to significantly reducing the time-to-value for IT professionals from months to minutes. Shavlik's NetChk Protect, NetChk Configure, SCUPdates and IT.Shavlik.com are some of its on-premise and cloud-based solutions that enable customers to manage both physical and virtual machines, deploy software, discover assets, simplify configuration, control power usage and ensure endpoint security. By bringing the sophisticated capabilities enjoyed by large companies to organizations of all sizes and types, Shavlik is driving the democratization of IT. Shavlik Technologies have more than 3500 customers using their on premise IT Management products. For more information, please visit www.shavlik.com.

About VMware

VMware delivers virtualization and cloud infrastructure solutions 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 2010 revenues of $2.9 billion, more than 250,000 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

VMware, VMware vSphere and VMware GO are registered trademarks or trademarks of VMware, Inc. in the United States and/or other jurisdictions. Other marks mentioned herein are trademarks which are proprietary to VMware, Inc. or another company.

Shavlik Technologies is a registered trademark in the United States and certain other countries, of Shavlik Technologies. Additional Shavlik product names are either registered trademarks or trademarks of Shavlik Technologies. All other trademarks mentioned in this document are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the consummation of the acquisition of Shavlik Technologies, the planned integration of Shavlik technologies with VMware product offerings such as VMware GO and the prospective benefits to SMB and other VMware customers. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. 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) the satisfaction of closing conditions for the transaction; (ii) the successful integration of Shavlik and VMware technologies; (iii) adverse changes in general economic or market conditions; (iv) delays or reductions in consumer or information technology spending; (v) 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; (vi) our customers' ability to develop, and to transition to, new products and computing strategies such as cloud computing and desktop virtualization; (vii) the uncertainty of customer acceptance of emerging technology; (viii) rapid technological and market changes in virtualization software and platforms for cloud and desktop computing; (ix) changes to product development timelines; (x) VMware's ability to protect its proprietary technology; and (xi) VMware's 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 most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.