VMware offloads Zimbra as it commits to technology trio

Vendor finds buyer for email business as it sharpens focus on end-user computing, software-defined datacentre and hybrid cloud

VMware has sold off email and collaboration business Zimbra to enterprise-social firm Telligent as it completes its technology strategy rejig.

In January this year, VMware unveiled its plans for a company-wide realignment process, which included a "portfolio rationalisation" plan, of which the Zimbra sale forms part.

When the firm's chief executive Pat Gelsinger announced the new plans, he claimed the firm would focus on three main strategic areas: the software-defined datacentre, end-user computing and hybrid cloud.

On completion of today's deal, Telligent will merge with the newly acquired firm – taking the Zimbra brand name – to create a unified social collaboration business.

Zimbra has a handful of service provider partners in the UK as well as a global presence and was acquired by VMware from Yahoo in 2010. Once complete, the deal – which was for an undisclosed amount – will see VMware continue to invest in the firm as a minority stakeholder in order to ensure customer and partner continuity.

The financial impact of the deal on VMware was already included in previously issued guidance for the firm for 2013.

Since its acquisition by VMware, Zimbra has added more than 2,600 net-new customers and the technology is currently in use on more than 85 million mailboxes.

Erik Frieberg, vice president for product marketing in VMware's end-user computing division, said the Zimbra sale allows VMware to focus on the three pillars stated above.

"In order to continue focusing on these areas, we determined that the collaboration and communication features of Zimbra as a standalone product would be best delivered by a partner such as Telligent in order to continue enhancing the Zimbra technology platform and growing the business," he said.

"In transitioning Zimbra to Telligent, we are confident that customers will be in good hands with seamless product support, further technology innovation and go-to-market investments."