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Virtualization vendors to pose threat to VMware?

Given the competitive landscape, it would be extremely difficult for VMware to hang on to its 85% market share and hold the line on its top-dollar prices. That's especially true given how early it is for storage virtualization, which helps companies save money on hardware by allowing multiple operating systems and application programs on a single machine.

Bernstein estimates that penetration levels are still only at about 5%, meaning that the vast majority of the market is still up for grabs.

And while VMware investors may be aware of the threat from Microsoft -- which is launching a new product into the market in 2008 -- what may be less acknowledged is the pressure to lower prices that some top venture-backed start-ups will exert.

  • Is it entirely true?
  • Will it be any different than it has been before? When I say that , I mean, would their products significantly become "godsends"? Merely because they have been acquired by a firm who has a huge sales force?
  • Please, are you, the client willing to spend your hard earned dollars/euros on a product which is "yet to come, here's our zeta CD though!"
  • Companies will tap on Open Source to pressure VMware on prices, hey wait a minute, isn't the world accusing XenSource already to kiss yet another proprietery vendor. Soon Xen may become an orphan, some say.
  • How about speculating on facts, performances, demonstration?
  • How about looking at the "real stories" from the "real customers"?
  • Market merely 5% capitalized, Ok so tell me where is the rest? Enterprize? SMB? Home users?
  • Fact vs Fiction: VMware stands on the NYSE on what it built where as companies are getting attention merely because we all "woke up"! Big difference see!
This article has been written (apparently) in a den, far away from Data Centers and yet too close to the hype that somehow is back in!

Read the "analysis".


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