Vyatta Finds Friends

5:30 PM -- Vyatta Inc. , the open-source router startup, raised another $10 million today and buddied up with Citrix Systems Inc. (Nasdaq: CTXS), which led the round. It's Vyatta's third, atop $18.5 million raised in two other rounds. (See Vyatta Lands $10M and Vyatta Raises $11M.)

The surface story is that Citrix will use virtualized Vyatta routers in its cloud offering, but Internetnews.com brings up the interesting possibility of Vyatta being acquired by Citrix eventually. Citrix is already a drinker of open-source Kool Aid, after picking up Xensource in 2007 (that startup made products based on Xen, an open-source hypervisor).

I don't know much about Citrix's corporate personality. Everybody loves to tweak the competition, but it's a question whether Citrix would have the stomach to base a discount on Cisco Systems Inc. (Nasdaq: CSCO) earnings (the worse the gross margin, the better the discount) or write an apology letter for allegedly driving Nortel Networks Ltd. into bankruptcy. If not, then let's hope Vyatta stays independent.

— Craig Matsumoto, West Coast Editor, Light Reading

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