Seeking Alpha

Alex Filonov's  Instablog

Alex Filonov
Send Message
I was born in 1956 in USSR. After graduation from college in 1979 I worked full-time as an IT specialist. Until 1990 I worked for different companies in the Soviet military industrial complex. I created a small software business in 1991, which failed in 1993. I worked for Oracle Corp in 1995 in... More
My blog:
Muddling Investor
  • Closing VmWare: Darkened Clouds 2 comments
    Apr 26, 2013 10:30 AM | about stocks: VMW, GOOG, AMZN, IBM, MSFT

    My apologies. I promised this article yesterday, but didn't have time until now.

    I closed VmWare (NYSE:VMW) position yesterday. It was done according to plan, outlined in annual portfolio review. I waited for a better price, but missed the opportunity back in March.

    Company missed earnings target two quarters in a row. That's enough. These misses is a confirmation of my thesis: cloud computing moves out of IT departments to specialized companies. The biggest IaaS (infrastructure as a service) providers are Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN). Neither of them uses VmWare software. Other companies trying to crack IaaS and PaaS (platform as a service) are IBM (NYSE:IBM) and Microsoft (NASDAQ:MSFT). They don't use VmWare either. For me, Google and Amazon are obvious winners here. For VmWare, it doesn't matter though, they are losers in either case. Their product was designed for internal clouds.

    Bye, VMW. It was a good run, with a good overall profit.

    Disclosure: I am long GOOG.

    Additional disclosure: Positions can change any time

    Themes: Cloud Computing Stocks: VMW, GOOG, AMZN, IBM, MSFT
Back To Alex Filonov's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • igggy
    , contributor
    Comments (480) | Send Message
     
    Who are the other providers of virtualization software? RedHat?
    How did VmWare lose its leading position? I remember them being way ahead of competition 10 years ago.
    27 Apr 2013, 02:27 AM Reply Like
  • Alex Filonov
    , contributor
    Comments (1412) | Send Message
     
    Author’s reply » VmWare didn't lose the leading position. Not in commercial virtualization software. The problem is: enterprise is moving mostly to external clouds, and VmWare was used mostly in internal ones. Big cloud providers either use OpenStack (open source software) or some proprietary stuff.
    29 Apr 2013, 10:44 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Not buying $BABA, not for the next six months. Probably never.
    Sep 19, 2014
  • Everything was down this week. Stocks, bonds, oil, gold. Is it Alibaba? If so, investment world is insane. Totally.
    Sep 13, 2014
  • Added a little bit to $EDF today.
    Sep 9, 2014
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.