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Rackspace acquires virtualization software firm

  • Rackspace (RAX +1%) has acquired ZeroVM, an Israeli startup that has developed server virtualization software (i.e. a hypervisor) built with the cloud services needs in mind. Terms are undisclosed.
  • ZeroVM asserts its hypervisor is differentiated from rival solutions (VMware's vSphere, Microsoft's Hyper-V, etc.) by an ability to virtualize only the parts of a server needed for a particular app, thereby improving performance, deployment times, and resource efficiency. The company also sees its approach yielding better data security for big data/analytics applications.
  • With its OpenStack cloud infrastructure offerings facing intense price competition from Amazon, Google, and Microsoft, Rackspace has been looking to differentiate by promising better performance and service quality. ZeroVM's hypervisor could help on this count.
  • Q3 results are due on Nov. 11.
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