Skip to main content

SeekingAlpha: VMware will face tough competition

David does the explaining very well as he was flooded with mails from people seeking advice:

The question might resolve as to whether VMWare/VMW can capitalize on its first-mover advantage to create a brand sufficient to keep IT departments insisting on the VMWare solution over its competitors. For investors, the November share price decline and subsequent presumed base assuage a large measure of price and time risk, and help to create a maximum reward opportunity.

The likelihood exists that Q4 will be a barn-burner, but with increasing competition comes decreasing profit margins, so the risk is very real to the company... and its stock. Recall that just as capitalism bids away excess returns via increasing competition, so too does certainty serve to bid away opportunity via, perhaps paradoxically, an increasing share price. Conversely, the greater the uncertainty, the greater the potential reward. Thus, I am a buyer soon of VMWare/VMW, despite the prevailing level of uncertainty. Well, really, because of the uncertainty. I am, after all, an investor.


Labeled under Opinions, here's the rest of that useful advice.

Comments

Popular posts from this blog

Get Vyatta Virtual Appliance, now VMware certified!

We all know Vyatta, don't we?

Vyatta, the leader in Linux-based networking, today announced that its open-source networking software has received VMware Virtual Appliance Certification, thereby providing customers with a solution that has been optimized for a production-ready VMware environment. The company also announced it has joined the VMware Technology Alliance Partner (TAP) Program. As a member of TAP, Vyatta will offer its solutions via the TAP program website. With the Vyatta virtual appliance for VMware environments, organizations can now include Vyatta’s router, firewall and VPN functions as part of their virtualized infrastructure.

Vyatta combines enterprise-class routing and security capabilities into an integrated, reliable and commercially supported software solution, delivering twice the performance of proprietary network solutions at half the price. Running Vyatta software as virtual appliances gives customers many more options for scaling their data centers and cons…

3PAR adds native LDAP support to simplify administration

3PAR®, the leading global provider of utility storage, announced today native support for lightweight directory access protocol (LDAP). Support for LDAP enables centralized user authentication and authorization using a standard protocol for managing access to IT resources. With 3PAR’s support for LDAP, customers are able to now integrate 3PAR Utility Storage--a simple, cost-efficient, and massively scalable storage platform—with standard, open enterprise directory services. The result is simplified security administration with centralized access control and identity management.

“3PAR Utility Storage already provides us with a reliable, shared, and easy-to-use consolidated storage platform,” said Burzin Engineer, Vice President of Infrastructure Services at Shopzilla. "Now, with 3PAR support for LDAP, managing security commonly--across all our resources, including storage--is also simple and efficient.”

Press Release

DeepLearningTrucker Part 1