IDF spends $6-7m on VMware virtual servers

20 virtual servers can run on one physical server.

The IDF's immense expenditures on computerization and its importance has forced the army to rethink its spending model. The IDF recently closed a $60-70 million three-year servers tender, considered the country's largest tender in this field. The tender includes virtual server solutions.

Sources inform ''Globes'' that VMware Inc. (NYSE:VMW) will supply $6-7 million worth of virtual server solutions over the coming years. The VMware environment simulates the operation of servers on enterprise networks. The company's software provides a range of computer resources on a physical server irrespective of the server hardware or the amount of memory on it.

The main advantage of virtual servers is that they better exploit existing physical servers (an ordinary server is used only 10% of the time), which enables 20 virtual servers to operate off one physical server.

VMware, run by president and CEO Diane Greene, is one of the more successful IPOs of recent years on Wall Street, and has a current market cap of $22 billion. VMware Israel declined to comment on the report.

Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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