Certainly, from a technological standpoint, this is the stock that most of the investing world has been waiting for," said David Menlow, president of market research firm IPOFinancial.com. "It's going to be met with an incredibly strong level of investor support."But watch out that it may start a domino effect for other IPOs as well!
Despite its connection to well-known players in the tech market, VMware faces the challenge of increasing competition.
"Competition will definitely be an issue, but to what extent I'm reluctant to say," said equity analyst J. Hingorani, who covers EMC at Standard & Poor's. But Hingorani is quick to add that VMware is probably the furthest ahead of its competitors, which include Virtual Iron Software and XenSource.
VMware's IPO could spark additional IPOs in the virtualization market. John Thibault, president and chief executive of Lowell, Mass.-based Virtual Iron, said an initial public offering is something the company will have to consider by the end of next year, or beginning of 2009.
Check Forbes for the rest of the story.