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Virtualization 3.0 to be the tipping point!

I've spoken about Virtualization 1.0 through 4.0 in my keynote in Belgium here. So what is 3.0? Application virtualization! We are moving gradually (and parallelly) with 1.0 (Server), 2.0 (nascent Management capabilities including LM, Staging etc) and to the untouched area (and that I mean from a broader perspective with keeping the minimal market adoption and penetration in mind)that is Application Virtulization. It has been there for a while, yes I know, but you know what I mean. Wrap it all up in a virtual app and then see it move, thats what I mean.

That will decide who will take the lead and who won't. I'll let you read this for a while to get an idea of what to expect from the vendors in the coming 18 months.

What was missed in all of this doom and gloom was the fact that VMware’s revenues were actually up – way up. Yes, they missed their Q4 projection, which is why Wall Street punished them, but the fact remains that their revenues were up 80% over Q4 2006.

Stock analysts were concerned not just by the missed revenue number, but also by the fact that the company predicted its growth in 2008 would be a mere 50%. Has the market become so irrational that 80% year-over-year growth and 50% projected growth is bad?

“VMware’s near-term prospects look good,” said Gary Chen, senior analyst, enterprise, for the Yankee Group. “Their competitors are just trying to get their products out of the gates, and VMware will maintain technology leadership for a while.”

On the other hand, VMware’s competitors are established companies with deep pockets. “2008 will bring the first of a series of challenges,” Chen said. “Microsoft will enter the market, for real, in 2008, and as VMware expands into international markets, it will be tested. Microsoft has a significant global reach.”



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