IDF publishes $15m virtualization tender

[Globes] - IBM, HP, and Dell are among the bidders.

Sources inform ''Globes'' that the IDF has published its first virtualization tender, worth $15 million. The IDF is due to pick an Israeli company to install systems made by VMware Inc. (NYSE: VMW) at IDF units.

VMware Israel Ltd. declined to comment on the report.

The IDF said in response, "The IDF has used VMware software for a long time. The software was purchased from IBM as part of a procurement of servers. In order to save costs and to streamline, the defense establishment has published a tender for VMware software distributors. The tender is due to be completed by mid-May. The purpose of the tender is to cut costs and obtain support services."

Virtualization systems virtualize computer activity regardless of the hardware on which it runs. In this way, a single computer at an organization can obtain all network resources, even if the programs are not installed on the computer itself.

In 2008, the IDF completed a $60 million three-year tender for servers, which was won by IBM Corp. (NYSE: IBM). The tender included virtualization servers of VMware, worth $6-7 million.

The advantage of virtualization is that it more efficiently utilizes the physical computer environment. According to VMware, its solutions enable 20-30 virtual servers to operate on a single physical server. The virtual environment can also immitate work environments that could not exist on an ordinary server with hardware, or on an unsuitable operating system.

The IDF tender is for three years, with a two-year option to extend under the same terms, as is usual with IDF tenders.

The tender is due to close in two weeks, when the IDF will pick the company that will install the solutions. IBM, Hewlett Packard Co. (NYSE: HPQ), and Dell Inc. (Nasdaq: DELL) are all reportedly bidding in the tender, and have linked up with Israeli companies in order to meet the tender criteria.