VMware was surprised to find

VMware was surprised to find out that its biggest rival, Cisco, owned 5% of its company:

VMware was surprised to discover that his biggest rival, Cisco, which owns 5% of the company.

Cisco and VMware technology two great rivals, had a confrontation of any kind this week.

In one corner, VMware had its great customer conference, VMworld, where more than 23,000 people flocked to San Francisco. One thing I heard VMware plans to overthrow the king Cisco network industry.

In the other corner, Cisco had its huge exhibition Global sales experience in Las Vegas, where it is pumped to its sales force of 20,000 men to go out and sell (and beat VMware).

In a pre-show interview with Business Insider, VMware CEO Pat Gelsinger said that among several new businesses round of billion potential of VMware, is happier Product NSX, which is competing with Cisco.

"This is an industry that has been operating in essentially the same architecture for 25 years," Gelsinger said. NSX described as "radical".

NSX reached $ 1.25 billion acquisition of VMware in a startup called Nicira few years in which VMware outbid Cisco for starting ago, and in the process destroyed the Cisco relationship with your partner once close EMC. (EMC is the parent company of VMware.), John Chambers, Cisco and VMware was trash talking Nicira business since.

This week, Gelsinger said basically the World Chambers Network grudge EMC CEO Joe Tucci, due to this acquisition.


"In the relationship between Joe [Tucci, CEO of EMC] and John, who was a very emotional each point. Personally, I am worried about finding a more collaborative relationship with Chuck [Robbins, new CEO of Cisco] because it was a matter deeply personal between John and Joe emerged ".

And there are good reasons Gelsinger want to make friends with Robbins. Although the two companies are facing in the market, Cisco has quietly purchased a large stake in VMware.

Greater involvement of VMware know.

A month after VMware released its annual proxy statement earlier this year, VMware had to be updated, as "realized" Cisco has more than 5% of VMware, 6.5 million shares VMware said.

This game does not provide enough voters say Cisco, will oust the board of VMware and VMware NSX killed the product. But an activist investor looking for a hard sell EMC VMware. And if that wins investors, Cisco is sitting pretty.