Deals

VMware buys systems-monitoring startup Integrien for $100M

Virtualization giant VMware announced today that it has acquired an IT analytics startup called Integrien for $100 million.

Irvine, Calif.-based Integrien offers systems monitoring software, similar to IBM’s Tivoli, with an emphasis on up-to-the-minute information about problems with your infrastructure. Microsoft’s Sidekick unit signed up as a customer to make sure it doesn’t have another outage like it did last fall. Itegrien was funded by Clearstone Venture Partners, Tech Coast Angels, Acartha Group, and Mariner Capital Ventures, most recently in an $8 million round announced in May.

Clearstone’s Jim Armstrong told us a little bit more about the company and the deal. The founders came from LowerMyBills.com, where they ran the company’s data center. He said Clearstone invested $20 million out of the $35 million that Integrien raised in all. All of the company’s employees (30 in Irvine, 50 in Armenia) have accepted jobs at VMware, he said.

“I’ve gotten some angry calls from later-stage investors,” said Armstrong, who said they were wondering why the company was slow to take meetings with them.

Prior to the acquisition (or at least while talks were underway), Integrien and VMware had already been working together — Integrien announced the full launch of its AliveVM monitoring product for VMware administrators today.

“It really was VMware who saw this problem,” said Armstrong. Customers like JPMorgan Chase were telling VMware that Integrien had solved the monitoring problem and that the two companies needed to talk, he said.

VMware also announced the acquisition of an identity management company called TriCipher for an undisclosed sum. Investors include ArrowPath Venture Capital, Intel Capital, Trident Capital, RBC Technology Ventures, and Epic Ventures.

[Additional reporting by Owen Thomas]

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