Intel acquires Neocleus – UPDATED

Posted by virtualization.info Staff   |   Friday, September 3rd, 2010   |  

Intel is definitively building something. The chipmaker is shopping, and shopping quickly, in the software market with a primary focus on security. At least for now.

Just a couple of weeks ago the company announced the acquisition of the security giant McAfee for $7.68B in cash. Now it acquires the virtualization startup Neocleus.
The news is not official yet, but Neocleus posted the news on its corporate blog a few hours ago, which Intel immediately required to remove, virtualization.info has learned.

Neocleus launched in May 2008, entering the virtualization market with an ambitious plan to leverage a client hypervisor for security purposes. Their product, based on Xen, has been one of the first on the market, along with the Virtual Computer NxTop.
The company, funded by Battery Ventures and Gemini Israel for $16.4M in two rounds, has been under the radar for most of its time.

Neocleus go-to-market strategy changed over the last two years, as their product failed to get any serious traction: in early 2010 the company released a version of its TrustedEdge platform called NeoSphere that could be OEM’ed and extended by PC lifecycle management (PCLM), security and help desk vendors. The first company to adopt it, in March, has been BigFix.

There’s no confirmation about the price that Intel paid for Neocleus but several sources suggest that it’s probably quite small as the startup was nearly out of cash.

Whatever the price is, the move leads to at least two interesting considerations:

  1. In January 2009 Intel and Citrix announced a pretty strong partnership on XenClient, the client hypervisor that will be released at the end of this month.
    It’s not clear yet what Intel plans to do with McAfee and Neocleus, but it may imply a change in the relationship with Citrix.
    In May Citrix announced a two-phases partnership with McAfee on XenClient, so even this alliance may be impacted.
  2. Right now on the market there are only three vendors working on client hypervisors: Virtual Computer which already ships NxTop, Citrix which is about to ship XenClient, and MokaFive, which just previewed its new platform at VMworld and that would probably ship later this year.
    Citrix has no direct control on Virtual Computer but it’s one of its investors, so it has a sort of option on any potential acquisition, and MokaFive has yet to deliver and build a credibility as client hypervisor vendor.
    Because of this, and because VMware is far behind in delivering its own answer, Client Virtualization Platform (CVP), MokaFive may become a highly desirable acquisition target.

The virtualization.info Virtualization Industry Radar has been updated accordingly.


Update:
The Israeli publication Globes reported that Intel spent just “a few hundred thousand dollars”.
The news site also reports that Neocleus raised $22M and not $16.4M as virtualization.info reported above.


Labels: ,

blog comments powered by Disqus


virtualization.info Newest articles
Paper: VMware vSphere Virtual Machine Encryption Performance

November 22nd, 2016

Encryption of virtual machines is something that has been requested for years by the security community. VMware continued to postpone its implementation due to the negative operational impact that many…

Quest Software leaves Dell

November 1st, 2016

In September 2012 Dell announced to have completed the acquisition of Quest Software, a Californian company with an history in systems management, security, business intelligence and, falling back in our…

Citrix announces Q3 2016 results

October 21st, 2016

Citrix announced its financial results for third quarter 2016.
The revenues for the second quarter were $841 million for an increase of 3% compared to Q3 2015.
Net income was $132…

Release: VMware vSphere 6.5 & Virtual SAN 6.5

October 19th, 2016

2016 edition of VMworld US has been quite turbulent, on the other hand during VMworld Europe, happening these days in Barcelona, the company announced a few more products for the…

Release: VMware vRealize Log Insight 4.0

October 18th, 2016

Log Insight is a log aggregation, management and analisys tool, that VMware first introduced in 2013 and now is usually compared with Splunk.
Yesterday VMware announced Log Insight’s new major…

Release: Windows Server 2016 with support for Window Server & Hyper-V containers

October 13th, 2016

Yesterday Microsoft announced the general availability of Windows Server 2016 which the company defines as a cloud-ready OS.
Beside fancy definitions, one of the most relevant perks of this release…

Release: Oracle VM 3.4.2

September 22nd, 2016

During Oracle OpenWorld 2016 the company released version 3.4.2 of its enterprise virtualization solution.
Oracle VM is available for both x86 and SPARC based processor architectures and uses the Xen hypervisor…

VMworld US 2016 Wrap-up

September 1st, 2016

Today was the last day of VMware’s flagship conference VMworld in Las Vegas, an highly controversial edition which left a good chunk of the audience disoriented if not properly disappointed….

Gartner releases its Magic Quadrant for Cloud Infrastructure as a Service for 2016

August 11th, 2016

Last week Gartner updated its Magic Quadrant for Cloud Infrastructure as a Service (IaaS) for the year 2016. The Magic Quadrant for the year 2015 was released in May last year…

Release: Ansible Tower 3 by Red Hat

August 2nd, 2016

Ansible is one of the four main players in the automation market, younger then the well known Chef and Puppet, has been launched in 2013 in Durham, N.C. and acquired…

IBM announces earnings for Q2 2016

July 19th, 2016

Yesterday IBM announced its results for Q2 2016.

If we compare with the same quarter in 2015 earnings per share, from continuing operations, decreased 22%. Net income, from continuing operations,…

Red Hat announces earnings for Q1 2017

June 24th, 2016

Red Hat announced its financial results for the first quarter of fiscal year 2017.
Total revenue for the first quarter was $568 million, with an increase of 18% from the…

Release: Red Hat Enterprise Virtualization 4.0 Beta

June 24th, 2016

Today Red Hat released in beta version 4.0 of its KVM-based virtualization platform Red Hat Enterprise Virtualization (RHEV).
As a major release RHEV 4.0 ships a wide series of enhancements including:

Red Hat…

WhatMatrix community keeps growing

June 21st, 2016

virtualization.info has been following WhatMatrix since its inception and, after 6 months since the website has been launched, we are happy to report that its community is growing and contributing…

 
Monthly Archive