Report Suggests Yahoo's Zimbra Sale To VMWare

It seems that Yahoo Inc. is continuing with its drive of reshaping and restructuring its business strategy, which includes pulling shutters down on some of its services, like Geocities, to trim down its costs.

This come amidst of efforts by the internet giant to weather down the impacts of economic recession and its failure, over the past few years, to strike significant deals with Microsoft and Google.

In its latest move, Yahoo is offloading its open-source e-mail service Zimbra, which the company acquired back in September 2007 for a not-so-insignificant $350 million, according to a report published on the blog All Things Digital.

The technology blog is reporting that Yahoo is all set to sell the open-source e-mail service to the virtualisation major VMware for an undisclosed sum.

The acquisition of Zimbra would help VMware to ramp up its virtualisation offerings for its enterprise clientele. Furthermore, it would presumably augment the appeal of VMware’s virtualisation services, and thereby help it attract newer clients.

Yahoo had acquired Zimbra with an intention to spruce up its Yahoo Mail service, and have a good hold in the white-label e-mail domain.

But unfortunately for Yahoo, the presumed synergy never worked out in real, and eventually led Yahoo to put Zimbra on the auction block in last September.

Our Comments

Both Yahoo and VMware declined to comment on the report, with a Yahoo spokeswoman saying “We don’t comment on rumors or speculation”. Google has revolutionise the way email is dealt with. Before Gmail, users had to prune their email boxes or back up their messages on a regular basis. This is no longer the case.

Related Links

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