Articles for VMware

VMware Finds New Competitor in OnLive

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Friday, January 13th, 2012 by Trefis Team

VMware (NYSE:VMW) just found a new competitor in the form of OnLive, a cloud-based gaming company, which recently launched cloud desktop app for the iPad for free. OnLive has been a provider of cloud-based video games through a simple subscription service that streams the games to an OnLive box, computer or tablet thereby eliminating the need to buy any expensive computer parts or gaming consoles. The company is now offering OnLive Desktop based on its instant-action cloud gaming technology to deliver a seamless Windows desktop experience with multi-touch gestures capabilities on the iPad.

This could be interesting as VMware is already in a tussle for market share with other desktop virtualization solution providers like Citrix (NASDAQ:CTXS) and Microsoft (NASDAQ:MSFT) and surely does not want added competition in its core, lucrative market. (See VMware Heads to $110 as Desktop Virtualization Demand Rises)

We currently have a $111 Trefis price estimate for VMware.

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VMware Heads to $110 as Desktop Virtualization Demand Rises

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Monday, January 9th, 2012 by Trefis Team

Demand for desktop virtualization is growing by leaps and bounds, according to a new global market study by virtual solution provider Citrix (NASDAQ:CTXS). The survey found that 55 percent of responding companies will deploy new desktop virtualization for the first time by 2013. This offers a big opportunity for virtual desktop solution provider, VMware (NYSE:VMW), which is currently tied with Citrix for the top slot in the virtual desktop infrastructure (VDI) market. The two companies together account for nearly 80% of the total desktop virtualization market, followed by Microsoft (NASDAQ:MSFT) which has over 15% share.

We currently have a $111 Trefis price estimate for VMware, about 33% above the current market price.

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VMware Expands Distribution in Ireland With Avnet Technology Solutions

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Tuesday, December 13th, 2011 by Trefis Team

Avnet Technology Solutions, a subsidiary of IT software distribution company Avnet (NYSE:AVT), recently announced that it has expanded its distribution agreement with VMware (NYSE: VMW). Avnet Technology Solutions will now offer VMware’s complete portfolio of virtualization software to its value-added reseller (VAR) partners in Ireland. Avnet Technology Solutions has been VMware’s distribution partner in the U.S. since 2007 and has expanded the partnership across Europe to France, Romania, Turkey, Poland, Hungary and the Czech Republic during this period. This is good news for VMware as it seeks to maintain leadership in the virtualization space, which is seeing stiffer competition with major technology companies like Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL), and SAP (NYSE:SAP), looking to gain market share.

We have a $111 Trefis price estimate for VMware, about 15% above the market price.

See our full analysis on VMware

Virtualization Software Worth 90% of VMware stock

We estimate that VMware’s virtualization software contributes nearly 91% of our $21.21 Trefis price estimate for VMware. As a pioneer in this field, the company has historically enjoyed a major share in the fast growing virtualization market. However, with increasing competition VMware’s share in the virtualization market has declined consistently and now stands at under 50%.

We forecast VMware’s share will continue to decline in the future as the market expands at a rapid rate, offering enough opportunities for other players to exploit. However, expansion into new and existing markets should help VMware continue growing its top-line and maintaining its lead in the virtualization space.

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New Acceleration Solution Can Move VMWare’s Stock

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Monday, August 22nd, 2011 by Trefis Team

A newly unveiled virtualization acceleration solution for VMware (NYSE:VMW) named ViSX G3 by Astute Networks could help boost the rate of adoption for virtualizations services. One early adopter who tested some of VMware services reported that operations saw a 1,500 percent improved read performance on critical applications, accelerated performance on its most demanding VMs and it delivered a noticeable increase in the responsiveness of its database applications. The backups were completed faster with less impact on other operations and productivity and efficiency were up as well. This could be a very good development for VMware as it continues to face increased competition from firms like Microsoft (NASDAQ:MSFT) and Citrix (NASDAQ:CTXS) in the virtualization market.

We estimate that VMWare has about 45% market share of the virtualization market globally. This supports our $111 Trefis price estimate for VMware stock, which is about 20% above the market price.

VMware Announces vFabric 5 to Target Enterprise Market

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Monday, June 27th, 2011 by Trefis Team

VMware (NYSE:VMW) on Tuesday unveiled its new application platform vFabric 5 following a chain of acquisitions that include SpringSource and Digital Fuel. VMware also acquired Socialcast and SlideRocket in the past two months.

EMC & VMware Show Strong Q1 Results

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Thursday, April 28th, 2011 by Trefis Team

VMware (NYSE:VMW), owned by EMC (NYSE:EMC), leads the virtualization software market with a share of 45% and competes with players like Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and Citrix (NASDAQ:CTXS). VMware reported strong earnings for Q1 2011, which raised its stock price by almost 11% in the past week and also boosted EMC stock by 6%. VMware is crucial for EMC as it constitutes around 40% of its stock price, by our estimates.

VMware Worth 40% of EMC’s Stock Value

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Friday, April 8th, 2011 by Trefis Team

EMC (NYSE:EMC) is the global leader in the external disk storage market and parent firm of the virtualization software vendor and market leader VMware (NYSE:VMW). EMC’s stake in VMware has decreased from 100% in 2005 to 80% in 2010.

IBM Enters Desktop Virtualization

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Friday, January 28th, 2011 by Trefis Team

On Monday, IBM (NYSE:IBM) launched the Virtual Desktop for Smart Business, a new workforce mobility offering that provides anytime, anywhere access to personal desktops from mobile devices — including tablets, netbooks, laptops and thin clients. IBM’s offering has come at a crucial point as desktop virtualization adoption picks up among businesses. While the market is already dominated by competitors like VMware (NYSE:VMW) and Citrix (NASDAQ:CTXS), we believe IBM’s brand recognition and large network of business partners will help its easy-to-use and well-priced product to gain share in the desktop virtualization market.

We currently have a $185 Trefis price estimate for IBM’s stock, about 14% above market price.

After Strong Run, Do Cloud Stocks Need a Breather?

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Tuesday, January 25th, 2011 by Trefis Team

Last week NetApp (NASDAQ:NTAP) dipped on F5 earnings as revenues came in a little below expectations. While profit for F5 surged by 69% in Q1 year over year beating analyst expectations, the stock fell as investors had become accustomed to cloud players beating and raising expectations. In addition to NetApp, other cloud EMC (NYSE:EMC), Salesforce.com (NYSE:CRM) and Riverbed saw profit taking as a result of F5′s earnings.

While we are bullish on storage and cloud networking stocks, we felt it was worth reviewing NetApp’s position in the industry. In an earlier note, we highlighted how cloud computing is resulting in a transition in the data storage space and all major players are making significant investments to grab the cloud opportunity. (See How NetApp Benefits from Cloud Demand, Dell’s Strategic Shift to Cloud Lifts Stock Outlook)

NetApp, a large player in the cloud computing space, competes primarily with EMC, VMware (NYSE:VMW), HP (NYSE:HPQ) & IBM (NYSE:IBM) in the data storage market, and we currently have a $64.48 Trefis price estimate for NetApp’s stock, about 15% ahead of the current market price.

VMware Could See 40% Upside on Shift to Virtualization

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Tuesday, December 21st, 2010 by Trefis Team

VMware (NYSE: VMW) competes with Microsoft (NASDAQ:MSFT) and Citrix (NASDAQ:CTXS) in the virtualization market, which it leads with around 45% share globally. As server virtualization becomes increasingly popular and the benefits offered – less power consumption, space optimization, greater capacity utilization and cost effectiveness – become indispensable to businesses, VMware is likely to benefit going forward.

The percent of servers that have been virtualized has increased from around 5% in 2005 to around 14% currently led by multiple benefits of virtualization in terms of ease of use and lower costs, greater interoperability in virtualization, and falling prices and improved functionality. These trends are going to benefit companies like VMware.

While we expect the percent of virtualized servers will continue increasing to 27%, the Trefis members expect a higher level of 40%, translating to an upside of 43% to our price estimate for VMware stock.

We currently have a Trefis price estimate of $89.24 for VMware’s stock, which is about in line with the current stock price.