Cisco buys another $13.3 million of VMware shares

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With much surprise yesterday Cisco announced a new investment in VMware, buying 500,000 shares from Intel for a value of $13,3 million.

The networking giant already invested $150 million in July 2007 just before the VMware IPO.
With this new equity stake acquisition Cisco owns 1,7% of the virtualization vendor.

The relationship between the two has progressively tightened because Cisco is developing the first virtual switch for VMware Infrastructure 4: the Nexus 1000V.

A lot of things are interesting in this move: