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!
Read the "analysis".