- verifiedWith SpringSource Buy, VMware Constructs Cloud Platform
The talk of CloudWorld this week was VMware's possessions of SpringSource . The top-of-mind waffle focused on the price: $400 million added, a very large sum for a company doing perhaps $25 million in revenues. Certainly there was a best bit of envy in this type of discourse. And, of course, the fact that SpringSource is an conspicuous source company further makes the number even more eye-watering.
However, looking beyond the begrudge and valuation puzzlement, what is the drift and meaning of the acquisition?
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I must say that, to me, it looks brilliant--and it takes a lot for me to generate that assessment. Having suffered a few destructive acquisitions at companies I worked for, and observed at wipe out many, many more, I've come to view these events attractive skeptically. They're always announced with fanfares and series hugs among the management teams, and 18 months later, after the acquiree's top conspire has left and the struggle to unite the products into the acquirer's portfolio seems fated, everyone shakes their head and wonders "what did body X see in company Y?"
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