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To: stockman_scott who wrote (209)3/2/2010 7:18:58 PM
From: Glenn Petersen
1 Recommendation   of 284
 
VMW closed above $50 today:

UPDATE 1-VMware to buy back shares, EMC to keep up stake

Tue Mar 2, 2010 4:16pm ESTStocks

NEW YORK, March 2 (Reuters) - Software maker VMware Inc (VMW.N) announced on Tuesday a share buyback plan, while its majority owner EMC Corp (EMC.N) said it plans to buy more shares in the firm to maintain its stake of around 80 percent.

VMware, which makes software that boosts the efficiency of business computers, said its board of directors approved the purchase of up to $400 million of its shares through the end of 2011.

Corporate data storage equipment maker EMC said it plans to make open market purchases of VMware's shares to maintain its ownership at a level of around 80 percent over the long term.


(Reporting by Ritsuko Ando)

reuters.com 

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To: stockman_scott who wrote (209)4/20/2010 4:48:22 PM
From: Glenn Petersen
1 Recommendation   of 284
 
VMW beats the first quarter consensus numbers:

Company press release

UPDATE 1-VMware profit, forecast beat Street view

Tue Apr 20, 2010 4:38pm EDT

* Q1 non-GAAP EPS at 32 cents vs Street view 28 cents

* Q1 revenue $634 million vs Street view $592.5 million

* Revenue outlook ahead of Street view


* Shares fall 1 percent

BOSTON, April 20 (Reuters) - VMware Inc (VMW.N) posted higher-than-expected quarterly profit and issued a revenue outlook ahead of Street projections, citing strong pent-up demand from businesses which held off on buying its software during the recession.

The top maker of virtualization software that boosts the performance of computer servers reported results on Tuesday in the wake of strong earnings and forecasts from No. 1 chipmaker Intel Corp (INTC.O) and No. 1 technology services company International Business Machines Corp (IBM.N).

VMware posted profit, excluding items, of 32 cents per share, in the first quarter ended March 31, beating the average analyst forecast of 28 cents, according to Thomas Reuters I/B/E/S.

It also gave an upbeat outlook. It projected that full-year revenue would rise 30 percent to 35 percent from last year to a range of $2.625 to $2.725 billion, ahead of the $2.5 billion average analyst forecast.

Palo Alto, California-based VMware's net income rose to $78 million, or 19 cents a share, during the first quarter from $70 million, or 18 cents, a year earlier.

Revenue rose 35 percent to $634 million, beating the average analyst forecast of $592.5 million.

Shares of VMware, which is majority owned by EMC Corp (EMC.N), fell 1 percent to $55.97 in extended trade after closing at $56.52 on the New York Stock Exchange.

VMware's stock has climbed more than 30 percent so far this year, making the company among the most richly valued software makers. It trades for about 40 times next year's average estimated earnings per share.

By comparison, rivals Microsoft Corp (MSFT.O) and Oracle Corp (ORCL.O) trade for about 14 times next year's earnings forecast. (Reporting by Jim Finkle; Editing by Richard Chang)

reuters.com 

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From: Glenn Petersen4/27/2010 8:21:15 AM
   of 284
 
Salesforce and VMware team up to offer VMforce, a Java-based cloud computing platform:

Salesforce.com, VMware unveil joint cloud service

Tue Apr 27, 2010 8:00am EDT

* Lets programmers write software using Java language

* Preview of the service to launch in second half of 2010

* Companies do not disclose pricing, terms of partnership

BOSTON, April 27 (Reuters) - Software makers Salesforce.com Inc (CRM.N) and VMware Inc (VMW.N) said they will develop a hosted service that companies can use to write and run custom applications via the Web.

The two are joining forces to gain a foothold in the small but rapidly growing area of cloud computing. Rivals include Amazon.com Inc (AMZN.O), Google Inc (GOOG.O), International Business Machines Corp (IBM.N) and Microsoft Corp (MSFT.O).

The new system, dubbed VMforce, will run on Java, the world's most commonly used programming language for business applications. More than 6 million developers create programs using Java.

Salesforce already hosts a similar "cloud computing" product, dubbed Force.com, but programmers need to learn a proprietary language to write software that runs on that system.


The companies declined to disclose pricing or provide financial details of their partnership. They said a preview version of the service will be available in the second half of this year.

Salesforce.com is the world's biggest provider of software delivered via the Web. VMware is the top maker of virtualization programs, which allow companies to boost the efficiency of computer hardware by running multiple virtual machines on a single piece of equipment.

(Reporting by Jim Finkle; Editing by Steve Orlofsky)

reuters.com 

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To: stockman_scott who wrote (209)5/23/2010 12:32:48 PM
From: Glenn Petersen
1 Recommendation   of 284
 
VMware's Grand Plans

Victoria Barret, 05.21.10, 6:00 AM ET
Forbes

BURLINGAME, Calif. - Paul Maritz runs virtualization giant VMware. Prior to that, he built and sold a company to EMC and spent 14 years as a leader and visionary at Microsoft. Here, in conversation with Forbes Associate Editor Victoria Barret, he talks about what's next for VMware regarding cloud computing, cooperation with Salesforce.com and competition with Microsoft.

To see the video interview, click here.

Forbes: VMware has long had a reputation as a disruptive technology company, but mainly in the sense of tremendous increases in efficiency in the data center. It seems like you're taking it further and want VMware to be a central part of the new, evolving cloud technology stack, and something that developers are working directly with. Tell us about your vision, and where you see this going.

Paul Maritz: We see the world as basically having two dimensions. One is the dimension of existing applications, which companies have a huge investment in. They really can't do a lot in terms of rewriting those applications. They have to work with them as they are. And virtualization is the only technology that can actually do something for those applications in a incremental, digestible way.

But we think that there's also a lot that we can do as to how you operationally manage those applications, that there's whole new levels of efficiency we can get by allowing you to, essentially, build a giant computer out of your commodity hardware and manage things in a fundamentally more efficient way.

The other dimension is new applications. We think if we can influence the way new applications are written, we can get even further levels of efficiency and flexibility out of the infrastructure. It's for that reason that we have started to invest in that space, most signally with the acquisition of SpringSource.

That opens VMware up to the Java developer community, right?

Yes, and it allows us to now get much more intimate with the applications. By doing that, we think that by combining that learning with what we know about the low-level infrastructure, we can make things even more efficiently in the future.

So then the importance of cloud computing goes beyond where your data and where your applications are running.

Absolutely.

VMware recently made a big announcement with Salesforce.com, and what struck me was that the nature of data changes. It becomes more dynamic, more live, and applications really have to work with each other more so than in the past. How does your technology play a key role in that?

Well, one of the important things about the announcement with Salesforce.com is about a new generation of applications. Traditionally, enterprise applications have been about just automating existing business practices inside the enterprise. But as we move into this more connected world, where people have different expectations, enterprise applications are going to have to change as well.

People will expect to use information in a much more fluid and flexible way. So when we take applications into this new era of cloud computing, it's not just about changing where the underlying compute is being done. It's about changing how they access and interact with information.

Salesforce.com is a repository for a lot of important enterprise information already because people use it to automate their customer relationships. By combining it with our programming technology, we can unlock all of that information now to be used with inside a new generation of enterprise applications.

You spent over a decade at Microsoft. Now you're competing with Microsoft. How do you rate what they're doing in this space? Is Microsoft being disruptive right now?

Well, I never underestimate Microsoft.

You know better.

I spent nearly 15 years there. Clearly, they have a huge footprint, tremendous financial resources, as well as a lot of very smart people. They are trying to react to these same forces that everyone else in the industry sees, which is how to remove complexity, how to enable agility, but they're doing it very much within their own world.

Their response is, "We will address some of these issues, but it's going to be in a top to bottom Microsoft world."

I think that there's a need to have more open technologies. Microsoft will not be the only cloud provider in the world. So we need to have technologies that will give people a degree of cloud independence, but at the same time, the flexibility to exploit the unique goodness in each of these clouds.

Microsoft is very good at doing things at scale, and cloud computing is a scale play. So, in that sense, they're well-positioned, right?

Certainly they have a lot of assets they can bring to the table, but scale is not something that's unique to Microsoft. You know, as Marc Benioff has pointed out, Salesforce.com has one billion contacts in their cloud. They are already operating at scale, and in some senses, operating at scale with very important enterprise assets. So this is not just about whether a company can scale out, in terms of supporting consumer websites. It's really about: How do you scale in the context of what enterprises are going to expect?

Having been inside Microsoft, and watching them as a competitor, what do you think is their biggest obstacle when it comes to cloud computing?

I think one of their biggest challenges is, in some senses, cloud computing is corrosive of their existing business model.

Microsoft is a company that has built one of the world's most valuable franchises on selling operating systems that cloak a CPU, and selling white-collar productivity software that sits on every desktop. And it's one of the world's great business phenomena. But it could be that that's not the way of the future.

The way that cloud computing will deliver functionality probably embodies not just new technologies, but new business models, too.

And the one thing I've learned over my career is that often it's harder for companies to change their business model than to change technology, for very good reasons.

So the future of enterprise software, the industry, is it more fragmented than what we've been used to, where you have a pretty short list of dominant players who soak up the majority of market share?

Toward the end of these big waves of technology, the market consolidates. And the interesting thing is, by and large, the dominant players of one generation have not been the dominant players of the next.

As told to, and edited by, Victoria Barret

Follow Victoria Barret on Twitter: @VictoriaBarret.

forbes.com 

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From: Glenn Petersen6/25/2010 8:25:45 PM
   of 284
 
Red Hat CEO: VMware Our Biggest Competitor

Joab Jackson, IDG News
PC World
Jun 25, 2010 11:10 amEmail

When it comes to enterprise open source software vendor Red Hat, one might assume its biggest competitors to be Oracle, Novell, Microsoft, or even IBM.

However, Red Hat CEO Jim Whitehurst sees virtualization software vendor VMware as "our largest competitor," he said in an interview after his keynote at the Red Hat Summit, being held this week in Boston.

It is not so much that Red Hat salespeople will bump into VMware salespeople at the offices of potential customers, but that the companies share an overall vision of cloud computing, even as they differ on the approach of providing cloud services.

"When you start thinking about who is defining cloud-based architectures, it's us and them," he said. "We're the only two companies that have the components to really do cloud."

While admitting kinship with VMware, Whitehurst was quick to point out what he saw as the flaws in VMware's approach.

"Technically, it's a perfectly fine vision. Commercially, I worry about the lock-in and VMware defining the stack," he said.

Cloud computing favors open source, Whitehurst argued. "Modular layered architectures are built on open source," he said. He noted that the typical proprietary license models make it difficult to build a cloud, given the licensing and lock-in concerns. "Who in their right mind would roll out a 50,000 server environment locked into one vendor? If you buy ESX and three years later you get a renewal, how much will [VMware] charge you?"

VMware declined to comment for this story.

While the Red Hat Enterprise Linux operating system is widely used in enterprises, the company only recently introduced its own virtualization software, a commercial version of the open source Kernel-based Virtual Machine (KVM). VMware dominates the market for server virtualization software.

At the Red Hat Summit, the company announced its Cloud Computing Foundations, a set of software, reference architecture and consulting services that it says can help organizations run hybrid clouds, that is to say run applications that can be easily migrated from their own data center's private clouds to public clouds.

At the press conference announcing the Foundations, Red Hat head of virtualization Navin Thadani claimed that Red Hat's virtualization package, Red Hat Enterprise Virtualization (RHEV) offers most of the functionality of a VMware ESX set-up -- with the notable exception of live migration -- but is less expensive than VMware's software.

But the company also stressed that customers could use VMware with Foundations as well. "With Cloud Foundations, you can build a Red Hat Cloud on ESX. We're not saying you have to buy our whole stack," he said. "You don't have to tie the hypervisor to the management tools. Those are separate decisions."

While Red Hat plays down the choice of the hypervisor, VMware has been playing down the importance of the OS -- Red Hat's chief source of subscription fees -- in the cloud stack.

In a conference held on Wednesday in San Francisco, VMware president and CEO Paul Maritz minimized the role that OSes play in virtualization-heavy data centers. Developers will be more focused on frameworks like Ruby on Rails and VMware's own Spring rather than on OSes, Maritz said. VMware is not completely forgetting about OSes, however.

Earlier this month, VMware announced a partnership with Red Hat competitor Novell to use that company's SUSE Enterprise Linux as the base OS for all of its virtual appliances. The company will also be offer the distribution to users of VMware's VSphere, so they can use it as a guest OS.

Beyond VMware, Whitehurst did not admit to seeing any other serious competitors in the cloud space, at least those that offer a full stack. He did recognize that Microsoft offers customers the ability to run their software both on premise and in the cloud with Azure, but downplayed Azure by saying that customers would fear being locked in by Azure's Microsoft-centric software stack.

In two or three years, Whitehurst predicts, virtualization and cloud tools will still be a minority of Red Hat's revenue, compared to subscription fees of Red Hat Enterprise Linux, though it will be a "substantial" minority of the revenue by then.

On Tuesday, Red Hat reported gains in both revenue and net income for its fiscal 2011 first quarter. It reported net income of US$24.1 million -- up from $18.5 million a year earlier -- and revenue of $209 million, of which $179 million was from subscription revenue.

Joab Jackson covers enterpise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

pcworld.com 

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From: Glenn Petersen7/20/2010 5:07:00 PM
1 Recommendation   of 284
 
VMW beats the analysts estimates ($656.4 million in sales and $.32 in non-GAAP EPS) for the second quarter:

Full company press release

VM profit more than doubles, sales gain

By Rebecca L. McClay
July 20, 2010, 4:49 p.m. EDT

SAN FRANCISCO(MarketWatch) - VMware Inc. /quotes/comstock/13*!vmw/quotes/nls/vmw (VMW 75.30, +2.88, +3.98%) reported a 129% rise in net earnings for the second quarter on Tuesday. The company said its net income was $74.5 million, or 18 cents per share, compared to a net income of $32.5 million, or 8 cents per share, for the same quarter last year. VMware said earnings would have been $142 million, or 34 cents a share, on a non-GAAP basis. Revenue jumped 48% to $674 million from the second quarter of 2009, surpassing analyst estimates. Analysts were expecting earnings of 20 cents a share and revenue of $656.7 million, according to FactSet

marketwatch.com 

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To: stockman_scott who wrote (205)9/15/2010 9:48:21 PM
From: Glenn Petersen
1 Recommendation   of 284
 
VMW may be interested in buying a piece of Novell:

VMware Eyed As Strategic Buyer of Novell's SUSE Linux

By Jennifer Cummings Of DOW JONES NEWSWIRES
SEPTEMBER 15, 2010, 11:54 A.M. ET

NEW YORK (Dow Jones)--VMware Inc. (VMW) and several other software companies were being pointed to Wednesday as the potential buyers of Novell Inc.'s (NOVL) open-source operating system SUSE Linux.

The speculation about a deal comes after a report by the New York Post Wednesday that software provider Novell has reached a deal in principle to sell itself in two parts, and will be signing a deal in three to four weeks.

The Post, which cited people close to the process, said a strategic buyer will purchase the piece of Novell that develops and delivers SUSE Linux, with a private-equity firm buying much of the rest of the company.

Several analysts said the most likely purchaser of SUSE Linux is virtualization and cloud infrastructure company VMware, noting that the company is already partnered with Novell in this area. They also said that purchasing the SUSE Linux could be a good strategic move for VMware.

"It furthers their strategic need to build out their software stack," Cross Research analyst Richard Williams said.

Novell declined to comment for this story and VMware couldn't be immediately reached for comment.

The speculation about the strategic buyer wasn't being limited to VMware.

"Novell has a fantastic collection of technology assets and intellectual property that could appeal to a wide number of buyers," Macquarie Securities analyst Brad Zelnick said.

Other potential buyers being named were Oracle Corp. (ORCL), EMC Corp. (EMC) and Red Hat Inc. (RHT).

News that Novell could be close to a deal helped push up the company's shares Wednesday, with the stock recently up 5.9% to $5.90.

In March, Novell essentially put itself up for sale after rejecting an unsolicited bid by hedge fund Elliot Associates LP to buy the company for about $1.8 billion, a price Novell said was too low. As of Tuesday's close, Novell's market capitalization was about $2.08 billion.

Regardless of who the buyer is, the sale of SUSE Linux to a strategic buyer is probably a better move for the company than doing the entire deal with a private equity firm, analysts said.

By selling SUSE Linux separately, Novell can "extract the most value for current shareholders," Pacific Crest analyst Nabil Elsheshai said.

-By Jennifer Cummings, Dow Jones Newswires; 212-416-2474; jennifer.cummings@dowjones.com

online.wsj.com 

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From: Glenn Petersen1/24/2011 7:57:58 PM
   of 284
 
VMW's fourth quarter results beat the analyst's estimates.

The Company's press release:

finance.yahoo.com 

VMware's 4Q profit more than doubles

VMware's 4Q profit more than doubles; revenue up 37 percent
0

On Monday January 24, 2011, 7:33 pm

PALO ALTO, Calif. (AP) -- Software maker VMware Inc. said Monday its fourth-quarter earnings more than doubled from a year ago, boosted by a 37 percent increase in revenue.

The results, along with the company's sales forecast for the quarter ending in March, topped Wall Street forecasts.

VMware helps businesses save money on power and equipment by providing software that allows one computer to function as several. It earned $119.9 million, or 28 cents per share, in the last three months of 2010. That's up from $56.4 million, or 14 cents per share, a year earlier.

Stripping out unusual items, VMware said it would have earned 46 cents per share, up from 31 cents. Analysts, who typically exclude special items, expected 44 cents, according to FactSet.

The company's revenue climbed to $836 million from $608.2 million. Analysts expected $803.9 million in the latest quarter.

Looking ahead, the company projected first-quarter revenue of between $800 million and $820 million, will above the average forecast from analysts, which called for $786.4 million.

But Mark Peek, VMware's chief financial officer, said the company does not anticipate an expansion of its operating margins in 2011. He cited investments the company is making to take advantage of the "generational shift" in information technology.

Shares in VMware were down $3.89, or 4.4 percent, at $83.84 in extended trading

For the full year, VMware's earnings came to $357.4 million, or 84 cents per share, up 81 percent from $197.1 million, or 49 cents per share, the year before. Revenue climbed 41 percent to $2.86 billion from $2.02 billion.

finance.yahoo.com 

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From: Glenn Petersen2/3/2011 7:27:47 AM
1 Recommendation   of 284
 
VMW has correctly identified their primary enemy:

VMware taps ex-Microsoft execs to battle Microsoft

As Paul Maritz spreads leadership responsibilities, three of VMware's top five officials are now ex-Microsoft executives.


By Jon Brodkin, Network World
February 02, 2011 11:44 AM ET

VMware's Paul Maritz has given up his title of president to four senior executives who will serve as co-presidents of the EMC-owned company as it increasingly goes up against Microsoft in the virtualization market. With Maritz - himself a former Windows executive - continuing to hold the CEO title, three of the top five executives at VMware are now ex-Microsoft officials.

Richard McAniff, Tod Nielsen, Mark Peek and Carl Eschenbach will be the four co-presidents, according to a filing with the U.S. Securities and Exchange Commission.

McAniff spent 21 years at Microsoft and was the corporate vice president of Microsoft Office before joining VMware in 2009. Previously VMware's executive vice president of products and chief development officer, he was named co-president of products and chief development officer.

Nielsen spent 12 years at Microsoft and was the vice president of Microsoft's platform group. Previously VMware's COO, he was named co-president of the applications platform.

Peek's most notable former employer is Amazon.com. He was CFO and now adds the title of co-president of business operations. Nielsen and Peek have been with VMware since 2009 and 2007, respectively.

Eschenbach, who's been with VMware since 2002, held various positions at 3Com, Lucent and EMC. He was promoted from executive vice president of worldwide field operations to co-president of customer operations.

VMware essentially created the market for x86 server virtualization, but cast off its founders Diane Greene and Mendel Rosenblum when Microsoft started making noise by adding the Hyper-V virtualization platform to Windows Server.

VMware still dominates the market with more than 190,000 customers, including 100% of the Fortune 100 and nearly all of the Fortune 1000. But Microsoft is undercutting VMware on price and attempting to bring virtualization to new customers by making it a feature of the operating system, instead of something that must be purchased separately.

Maritz has argued that virtualization is making operating systems less relevant, but VMware's core business is still centered on letting customers run instances of Windows Server in virtual machines.

"From our perspective, regardless of whether customers are running on Hyper-V or VMware, first and foremost they're a Windows customer," Microsoft virtualizaton chief Mike Neil said last year.

VMware is also facing increasing competition from Citrix and others in the growing market for desktop and application virtualization. But in a statement released to Network World, VMware did not cite any competitors by name in explaining its decision to reorganize.

"After completing an outstanding year in 2010, and with the need to drive even greater focus across the three layers of VMware's strategy, key leaders are stepping up to make further contributions," VMware stated. "These organizational changes are in response to the tremendous opportunities before us to help our customers navigate the journey to Cloud Computing."

networkworld.com 

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From: JakeStraw3/18/2011 12:51:51 PM
1 Recommendation   of 284
 
Virtualization is yet another market where Microsoft [NASDAQ: MSFT) is well behind the market leader. In the competition to sell hypervisors to the enterprise, that leaves Microsoft's Virtual Server and its Hyper-V, in a tight competition with Citrix Systems (NASDAQ: CTXS) XenServer for second and third place.

Indeed, Citrix is in second with 17 percent market share, while Microsoft comes in at third with 16 percent. However, neither can come close to challenging VMware (NYSE: VMW) ESX, which has built a mammoth 93 percent share.
infostor.com 

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