VMware's (VMW) weak Q1 guidance sparked an AH selloff in enterprise IT names. CTXS -3.1%. RHT...

|By:, SA News Editor

VMware's (VMW) weak Q1 guidance sparked an AH selloff in enterprise IT names. CTXS -3.1%. RHT -2.2%. CRM -1.2%. WDAY -1.3%. FFIV -1.3%. NTAP -2.4%.The guidance comes amidst concerns the virtualization software market is becoming saturated, and that Microsoft's free Hyper-V platform is proving a tough competitor. On the earnings call, VMware boasted of strong vCloud sales, but added it's seeing soft demand in the U.S and remains worried about Europe. Headcount is expected to grow by 1K in 2013 in spite of the job cuts.