Paul Maritz
Photo by former Microsoft evangelist Robert Scoble
EARLIER this year we explained why VMware's acquisition of Zimbra has poor signs of commitment [1, 2]. For starters, VMware's parent company is helping Microsoft Exchange/Outlook, which is Zimbra's direct rival (Zimbra is often the 'missing piece' to OpenOffice.org users who need mail and calendaring). Having essentially hijacked Yahoo! (more executives are still abandoning, only to be replaced by former Microsoft staff) Microsoft saw Zimbra being passed from Yahoo! to the Microsoft executives who run VMware after EMC's intervention. How much did that cost VMware? Not much, based on the numbers which have just come out.
Yahoo (NSDQ: YHOO) made about $100 million on the sale of its Zimbra enterprise e-mail and communications platform to VMWare in January; the companies had declined to release financial terms when the sale was initially announced but in its just-filed 10-Q Yahoo says it recorded “net proceeds” of $100 million and a “pre-tax gain” of $66 million on the sale.
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Linux users will need a Microsoft Office license to use Office Web Apps
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Still, it seems to me that this licensing requirement will inhibit organisations from taking full advantage of what the Office Web Apps can do. The advantage of a web-based solution is that anyone can access it, both within an organisation, and beyond it if you choose to publish it on the Internet. I doubt there will be much enthusiasm for buying Office licenses for Linux users, though maybe the kind of organisation that has a full Microsoft-platform deployment does not have internal Linux users anyway.