AFTER systematic bullying and disruption from Microsoft, Ballmer and the other thugs managed to get rid of Yang and put a Microsoft partner in charge of Yahoo! All along she was preparing to make a terrible, pathetic deal with Microsoft [1, 2, 3]. Zimbra, in the mean time, lost momentum due to Microsoft's threat to Yahoo! [1, 2, 3]. It all served Microsoft very well because without the Outlook/Exchange monopoly, its #1 cash cow (Microsoft Office) may become obsolete for many businesses.
According to ATD, Yahoo! CEO Carol Bartz personally approached VMware boss Paul Maritz after the web giant failed to attract substantial bids from other outfits.
Yahoo is close to selling its Zimbra unit to VMware, according to several sources close to the situation.
Sources said the deal could be announced soon, but the price for the open-source email unit was still unclear.
But the price, sources said, is much lower than what Zimbra fetched when Yahoo bought the Silicon Valley start-up in late 2007 for $350 million.
This is where Zimbra comes in. The company's technology was designed from the start as a cloud application, and it should give VMware a viable contender to Microsoft Exchange to offer hosting and service providers, rather than having to peddle applications from cloud competitors like Microsoft and IBM.
With SpringSource, Hyperic, and its adoption of Linux, VMware was already increasingly the open alternative to the closed cloud offerings from Microsoft, IBM, and others. Now, with Zimbra, it is adding its ability to compete at the application level, while retaining its open-source approach.