VMWare did it by going public, XenSource by being acquired.
Citrix is the new owner of XenSource. They paid $500 million. Imagine, $500 million for a company that gives away software to enterprises.
Our Martin LaMonica reports that, because Citrix has such a close relationship with Microsoft, Big Green might just drop its pending Viridian virtualization system and go with Xen.
Citrix may have gotten a bargain, because VMWare, trading as VMW, had brokers partying like 1999 yesterday. Originally priced at $29, it opened today at $57.71. This values the company at $21.65 billion. It's also four times what Citrix is worth.
All this is taking place at a really bad moment for the stock market as a whole. It could mean several things:
- Open source has become a new tech bubble and we're all going to get rich.
- VMWare is the next Krispy Kreme. (They were near $50/share in 2002 and are now at around $6.)
- Virtualization is like a stream of bat piss. It's a shaft of light where all around is darkness.