VSphere Should Boost VMware Market Share and Stock

Due to increasing competition within the server virtualization market, we expect VMware's (VMW) market share to continue to decline over the next few years from historical highs of about 50%. Despite this, we have slightly increased our VMware market share forecast based on strong demand for the company's vSphere software.

Like VMware's other virtualization software, vSphere allows companies to increase the utilization of their servers by allocating server resources to software applications independent of the underlying operating system required to execute the application. vSphere also makes it easier for IT managers to better manage various internal or external "clouds" or groups of virtualized server resources.



Launched in May of this year, vSphere has garnered strong demand. The company mentioned in its earnings release that 75% of its customers are planning to upgrade to vSphere in the next six months. As a result, we now expect VMware share to be higher across our forecast period and to reach 33% by the end of the forecast horizon, up from 29% previously. This translates to more than $1 billion of additional VMware market value and has boosted our Trefis price estimate for VMware from $44.49 to $49.54

Disclosure: No positions

Comments

[doodoo:]

Funny that you should come out with an upgrade afterhours.GS analyst downgraded the same stock on valuation early today.You guys have no balls,no guts,no honor etc.Was the timing of your release just a coincidence?I think not.Analyst might be the scum of wallstreet.One is down and another is up.Just to make everything hunkey dorey you claim no position in the stock. This must show that you have no money riding on your view.Well if they threw all you PR--KS in a bag and tossed it around then dropped you all out at the same time you would all have the same lies on your lips and the same scum in your brains.

Oct 30 06:03 PM

[kgeechee:]

doodoo, take a pill, fellow; take a nap. I always feel better after a daytime nap. Of course, I feel even better after a daytime snuggle-nap with a sweet, pretty young lady. At my age, 'young' is anyone under 60!

Analysts are not scum as Shorts & Money Managers are. Analysts can have different opinions and cannot be expected to buy every stock they fellow.

I'll bet we both feel better after our nap; me and the young lady. I cannot fathom what is bothering you so much. A stock report you did not like brings you to a Red Alert status? Not so much Strum und Drang.

Nov 03 11:56 AM

[doodoo:]

Seems the GS downgrade carries more weight than the upgrade from alpha.First stone thrown hits the hardest.Just can't understand how some analyst downgrades this stock.Upside earnings surprises in each of the last four quarters and raised revenue above est. by the analyst community and some gopher has the balls to downgrade while raising expected top on the stock.Games being played in my opinion.Do I trust analyst? NO. Do I think they cheat the public? YES. Whenever they can.PS I am over 65 and take my afternoon naps on a regular basis.

Nov 03 02:11 PM