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VMware to Acquire B-hive

VMware to acquire B-hive Networks to further enhance virtualization platform with application performance management

PALO ALTO, Calif. -- VMware, Inc. (NYSE:VMW), the global leader in virtualization solutions from the desktop to the datacenter, today announced it has entered into a definitive agreement to acquire B-hive Networks, Inc., a privately-held application performance management software company with headquarters in San Mateo, California and principal R&D facilities in Herzliya, Israel. With this acquisition, VMware will leverage the B-hive team and technology to offer proactive performance management and service level reporting for applications running within VMware virtual machines - on both servers and desktops. In addition, B-hives R&D facility and team will form the core of VMware’s new development center in Israel. The terms of the acquisition, which is expected to be completed during the third quarter of 2008, subject to customary closing conditions, were not disclosed.

“As customers increasingly standardize on the VMware platform to run their business-critical applications, it is critical for virtual infrastructure administrators to ensure the performance of applications from an end-user’s perspective,” said Stephen Herrod, Ph.D., chief technology officer, VMware. “B-hive’s agentless, virtual appliance-based approach goes beyond traditional monitoring approaches to proactively manage application performance to specified levels. These capabilities, combined with VMware’s proven virtualization platform, can allow our customers to consistently deliver on their application service level objectives. For example, if B-hive identifies degradation in application response time, it can remediate the problem by automatically instructing VMware Infrastructure to adjust the resources allocated to the application or provision an additional virtual machine with an additional instance of the application. In conjunction with VMware’s automated IT service delivery and business continuity capabilities, B-hive’s service level management capabilities further deliver on the vision of an automated, always-on, virtual datacenter.”

VMware Inc.

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