Technology StocksVMware, Inc. (VMW)

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To: stockman_scott who wrote (205)9/15/2010 9:48:21 PM
From: Glenn Petersen
1 Recommendation   of 318
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;

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From: Glenn Petersen1/24/2011 7:57:58 PM
   of 318
VMW's fourth quarter results beat the analyst's estimates.

The Company's press release:

VMware's 4Q profit more than doubles

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

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.

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From: Glenn Petersen2/3/2011 7:27:47 AM
1 Recommendation   of 318
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 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."

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From: JakeStraw3/18/2011 12:51:51 PM
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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.

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To: JakeStraw who wrote (234)3/18/2011 3:57:58 PM
From: muzosi
1 Recommendation   of 318
is this like the car talk guys' 3'rd half of the show?
the percentages below add up to 126.

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.

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To: muzosi who wrote (235)3/19/2011 11:40:40 AM
From: JakeStraw
   of 318

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From: Glenn Petersen4/4/2011 9:28:14 PM
   of 318
VMware Takes Over Mozy Cloud Storage from EMC

Mozy and VMware are a better product-making match for each other on a daily basis than Mozy and business owner EMC.

By: Chris Preimesberger

SANTA CLARA, Calif. — Mozy, which has served as the cloud-storage division of EMC for the last four years, revealed to eWEEK on April 4 that its business relationship has changed with the parent company.

Starting immediately, employees at the Utah-based Mozy will be seeing a new employer name on their paychecks: that of its cousin, VMware, also owned by EMC.

The main reason for this business-side change is that Mozy, with its cloud-based services, and Palo Alto, Calif.-based VMware, which is moving more of its own emphasis into cloud-building software, are a better product-making match for each other on a daily basis than Mozy and business owner EMC, spokesmen for both companies told eWEEK.

EMC, based in Hopkinton, Mass., is the world's largest independent storage hardware and software maker. The company is run as a very tight ship by CEO Joe Tucci and his lieutenants.

Mozy and VMware, more laid-back West Coast-oriented companies, are much closer in corporate culture than with EMC, an established East Coast corporation that is rapidly becoming a full-service data center systems provider.

Backstory of VMware and EMC Relationship

VMware and EMC have had a difficult relationship since the Palo Alto, Calif., company was acquired in January 2004 for $625 million. The business-approach problems came to a head in July 2008, when EMC relieved CEO Diane Greene of her duties and replaced her with current CEO Paul Maritz.

Shortly thereafter, Greene's husband, VMware's chief scientist, Mendel Rosenblum, left the company. Both Greene and Rosenblum had been among the founders of the company, which is now by far the world's largest virtualization software maker—and a reliable cash cow for EMC.

Mozy Chief Marketing Officer and Vice President of Product Management Russ Stockdale noted that this behind-the-scenes change would not affect Mozy customers in any way. All service-level agreements remain the same, he said.

EMC still owns both companies, so that has not changed. Stockdale said that more and more Mozy and VMware employees have been working together in project groups and that it made more sense for the two companies to create a closer relationship going forward.

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From: Glenn Petersen4/12/2011 9:25:42 PM
   of 318
VMware continues to morph:

VMware Launches Open-Source Cloud

By Stacey Higginbotham
Apr. 12, 2011, 9:05am PT

VMware has entered the cloud game by offering an open-source package called Cloud Foundry, a Platform-as-a-Service that should strike fear in the hearts of its competitors, especially the likes of, Microsoft and Rackspace. The platform will offer developers the tools to build out applications on public clouds, private clouds and anyplace else, whether the underlying server runs VMware or not. Like last week’s Open Compute Project from Facebook or Rackspace’s OpenStack effort, Cloud Foundry is a pretty big deal.

So What Exactly Is Cloud Foundry?

The goal of Cloud Foundry is to hide complexity from developers and make it easy to deploy and run applications anywhere. This is the same marketing speak that folks toting the cloud have pitched for years, but VMware wants to make it even more simple. Instead of worrying about instances or how to support a database, you just write a few lines of code, and Cloud Foundry makes it all happen for you. From day one, the platform will support Java thanks to VMware’s SpringSource buy back in 2009, Sinatra, Rails and node.js. However those wanting more frameworks and languages can build them, since the product is open-source.

Roger Bodamer, EVP Products and Technology at 10Gen – which supports the MongoDB NoSQL database — says it took about three months to integrate MongoDB with Cloud Foundry. 10gen is one of several launch partners that include RightScale, Joyent and Pivotal Labs.

VMware’s service has three components, illustrated by the nifty little slide above. The platform (what is called the “cloud provider interface”) can be a public cloud, such as Amazon’s EC2; a private cloud running VMware or other software; the actual Cloud Foundry platform; or what VMware calls a downloadable microcloud, which is basically a developer sandbox that looks like the Cloud Foundry platform running on a server or computer and synchs back up to any of the clouds.

The application services are items such as the existing MongoDB service already built-in, RabbitMQ messaging services, Redis, MySQL and Postgres for data, and others to come as programmers want to build it out. The shift toward open source is significant, because it runs somewhat counter to VMware’s roots, but it also shows how influential the open source world is on the cloud.

Charles Fitzgerald, a platform strategist for VMware, said in a conversation with me last Thursday, ”Open source is the price of entry in the cloud world today.” So VMware will offer Cloud Foundry as a paid, supported product for customers as well as provide the underlying code so developers can build their own. The product will open for an invite-only beta in stages, with the commercial support beta coming in the second half of this year.

Who Gets Hurt

Charles Fitzgerald says Cloud Foundry will sit on top of platform plays such as OpenStack, but in truth, it’s likely to hurt that effort by obviating the need for enterprises and other developers to worry about the underlying infrastructure platform. For those who want to build out an app, electing to deploy using Cloud Foundry means the developer can choose where to host an app without ever caring if it’s using OpenStack.

Fitzgerald claims the big victim with this move will be middleware providers such as IBM, which have multi-billion businesses helping connect information in huge enterprises. While he’s aware the licensing revenue for open-source software can be a tenth of the original value of the software, he says, “It’s new revenue to us and old revenue to them, and a billion looks pretty good to us.”

However the most immediate victims may well be the existing PaaS players such as, Google and a strong of startups that have been building out products in this space around specific languages. Salesforce, which works with VMware in a joint PaaS called VMforce, suddenly has some serious competition that can interoperate with apps on the platform as well as any others. VMforce will still exist, but now it looks like a walled garden.

And the smaller players, such as PHP Fog; Red Hat (srht), which purchased Makara; and EngineYard, all suddenly have a multi-billion competitor that has the potential to be all clouds to all comers. Even configuration management as a service startups might see some business erode as apps hosted in a PaaS have less need for those services.

VMware’s Constant Search for Reinvention

Fitzgerald talked a lot about openness and eliminating the hurdles for developers, but this move is yet another continuation of VMware’s willingness to throw its businesses under the bus as the world of cloud computing evolves. VMware recognizes that openness is the key for delivering cloud services and that interoperability will matter to more and more companies, especially those forming today.

While the PaaS market isn’t huge at the moment, it’s clearly an area of interest with Amazon adding Elastic Beanstalk — its own PaaS product — as well as talking up its Heroku buy and PaaS capabilities. Fitzgerald acknowledged that it’s early days, but says, “It’s very early and part of that is the limitations of the solutions and that are out there, so we can really make it mainsteam and legitimize it.” Flexibility is the biggest selling factor behind the cloud and with this offering that’s what VMware wants to offer. It’s pretty compelling.

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From: Glenn Petersen4/19/2011 4:51:42 PM
   of 318
VMW had a blowout first quarter.

The press release:

UPDATE 1-VMware beats forecasts, shares jump

Tue Apr 19, 2011 4:22pm EDT

* Q1 EPS ex-items 48 cents vs Wall Street view 42 cents

* Q1 revenue up 33 pct to $844 mln

* Sees operating margin higher this year

* Shares jump 10 pct after hours

SEATTLE, April 19 (Reuters) - VMware Inc (VMW.N) reported a better-than-expected 33 percent jump in sales of its software on Tuesday and indicated profit margins would rise this year from last year, helping its shares rise 10 percent after hours.

The company, which vies with Microsoft Corp (MSFT.O) and Oracle Corp (ORCL.O) in the fast-growing field of computer virtualization, reported first-quarter net profit of $125.8 million, or 29 cents per share, compared with $78.4 million, or 19 cents per share, in the year-ago quarter.

Excluding some one-time items, it reported earnings of 48 cents per share. Wall Street expected 42 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 33 percent to $844 million, above analysts' average forecast of $815 million.

For the second quarter it forecast sales of $860 million to $880 million, well above the $840 million expected by analysts.

The company also said it expected its non-GAAP operating margin for 2011 to "expand slightly" from 2010.

The market for server virtualization software -- which allows users to access information and create a 'virtual' operating system on any computer -- is one of the tech industry's fastest-growing areas.

Shares of VMware, which is majority-owned by data storage equipment maker EMC Corp (EMC.N), rose to $94.43 in extended trade, after closing at $85.97 on the New York Stock Exchange. (Reporting by Bill Rigby, editing by Bernard Orr)

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From: Glenn Petersen6/2/2011 11:28:24 AM
   of 318
A high profile win for VMW:

Message 27411954

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