Zimbra is off to VMware for an undisclosed price, which is likely much less than the $350 million that Yahoo paid for the open-source e-mail company in 2007.
Virtualization specialist is building out its cloud-computing infrastructure strategy by buying Zimbra from Yahoo, making applications the new stakes for cloud competition.
Yahoo may not know what to do with Zimbra, but with 50 million paid mailboxes and counting, Zimbra clearly knows how to build a business.
Yahoo may be putting Zimbra up for sale, but it's not because Zimbra isn't delivering its side of the bargain.
A Web e-mail software company may not fit into a media-oriented Yahoo, and so Zimbra could be on the block just two years after being acquired.
Satish Dharmaraj, former CEO of the open-source e-mail company, intends to focus investments at the Silicon Valley VC firm on open source, cloud computing, and SaaS.
Is it possible that Zimbra is selling more mailboxes than Google can give away?
In the competition between Google and Yahoo, Google may well own search, but its e-mail is a distant second to the Zimbra, the open-source e-mail innovator acquired by Yahoo.
Yahoo just lost a key executive from its Zimbra acquisition.
About a year and a half after Yahoo acquired his open-source e-mail company, Satish Dharmaraj will leave Yahoo in March.