Avastu Blog: Sustainable Global Clouds

SAN ANTONIO — August 7, 2008 — Rackspace Hosting, Inc. (NYSE: RAX) today announced the initial public offering of 15,000,000 shares of its common stock at a price of $12.50 per share. Rackspace will offer 12,700,000 shares of its common stock in the offering and the selling stockholders will offer an additional 2,300,000 shares of common stock in the offering. Rackspace and the selling stockholders have also granted the underwriters a 30-day option to purchase up to an additional 2,250,000 shares to cover over-allotments. Rackspace's common stock will begin trading on the New York Stock Exchange under the symbol "RAX" on Friday, August 8, 2008. Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC and Merrill Lynch & Co. are acting as joint book-running managers for the offering. W.R. Hambrecht + Co., LLC, Jefferies & Company, Inc., Cowen and Company, LLC, RBC Capital Markets Corporation, JMP Securities LLC, Signal Hill Capital Group LLC, and E*TRADE Securi...

3PAR 3PAR, who helped popularize thin provisioning in storage systems, completed its IPO in mid-November when it started trading at $14 – above its target range of $11 to $13 – to raise around $95 million. Its shares soared to $17.99 on its first day of trading but fell to $13.30 by Dec. 31. 3PAR hasn't yet reported earnings as a public company, but its SEC filings show $66.2 million in revenue last quarter and $2.3 million in losses for the quarter. See for the rest

GlassHouse Technologies Inc. on Tuesday registered to raise as much as $100 million in an initial public offering that, despite the company's financial losses, could prove a hit with investors drawn to its focus on "virtualization" technology. The Framingham, Mass., company offers consulting services for companies that use virtualization software to improve the performance of corporate servers and cut costs in their data centers. GlassHouse also provides Internet-based data storage. "Software-as-a-service," or SaaS, companies and vendors of virtualization products have proved popular among investors in recent years as corporate customers seek alternatives to conventional packaged software. GlassHouse, with roots in both sectors, will test the strength of that interest, said Peter Falvey, managing director with Boston investment bank Revolution Partners. "It will be a bit of a bell weather," he says. "It's not as though it's the 15th SaaS m...

GOSH!!! MARKET CAP = $ 30 BILLION! Your time to flaunt, baby! VMware's three-day conference, which began Tuesday in San Francisco, provides the once-obscure company with an opportunity to build on the buzz created by its lucrative initial public offering of stock less than a month ago. "This is their moment in the sun," said Erik Josowitz, vice president of product strategy of Surgient Inc., one of many software makers hoping to ride VMWare's coattails. "They have every reason to be having a very big party right now." VMware's software steers a process known as "virtualization," which allows computers to harness more of their unused power and run more applications at once without a hiccup. More than 20,000 companies already use VMware's software. Investors are flocking to VMware too. The Palo Alto-based company's initial public offering raised $1.1 billion, the most a high-tech company has pulled in since Internet search leader Google I...

"It's a little awkward to actually be happy for a competitor," Thibault admitted. But his company, Virtual Iron Inc., is riding the wave of free publicity generated by the VMware offering, and by Citrix Systems Inc.'s $500 million purchase of the virtualization software company XenSource the following day. VMware and XenSource are leaders in the booming market for server virtualization software - programs that let companies get far more work out of the server computers they own. Virtual Iron, of based in Lowell, is a low-profile upstart in the same business. But Thibault hopes to build his privately held company into an industry giant with cut-rate pricing and a focus on serving small and mid-size companies. Businesses of every size are adopting virtualization as a way of capping costs and simplifying data management. Server virtualization software lets a company run multiple applications on a single server computer, reducing the number of machines a company must buy....

Interconnect IP startup Sonics is planning an IPO, hoping to raise $80 million and recreate the same kind of buzz that VMware received recently. Considering the dearth of companies going public lately—indeed, the opposite is occurring where some are going private—this could be a barometer of things to come. Strong numbers could push other companies into the public markets and help rekindle the interest of venture capitalists in electronics startups. Link.

Storage vendors are hoping to cash in on the recent public outing made by VMWare on the stock market. Earlier this month the virtualisation giant, owned by EMC, went for an initial public offering (IPO). On the first day of trading it gave the firm a market cap of about $19bn (£9.6bn). Utility storage vendor 3Par has filed a registration statement with the US Securities and Exchange Commission (SEC) for a proposed IPO. The vendor, which recently united with Network Appliance to challenge EMC, is looking to raise about $100m. The number of shares to be offered and the price range for the offering have not been determined. Read at VNUnet.

VMware VMW is one such stock. The software maker came public last week at $29 a share and closed 76% higher its first day, for this year's best debut. It's now up more than 140% from the IPO price. While it may be tempting to try to buy a surging stock early, it's prudent to wait until it sets up in an initial base. The Palo Alto, Calif.-based company's software helps servers run more efficiently. VMware has been profitable since 2003, when it earned a penny a share. That rose to 4 cents, 18 cents and 23 cents the past three years for a three-year earnings growth rate of 111%. Sales growth accelerated the past four quarters, from 62% to 71% to 88% to 99% to 100% Link.

If you have missed the bell, it may still not be too late, Say Eric of Barrons.com. The company is nothing like Google, of course, but an enterprise-software play, of all things. VMware makes "virtualization" software, which enables companies to use servers more efficiently. It's quite a contrast from the enterprise-software companies that emerged during the bubble years. For customer-relationship-management, or CRM, applications, the underlying philosophy was: You must spend money to make money. VMware's value proposition has a real post-bubble flavor: You can spend less on hardware. Read on...

The rising demand for virtualization software is expected to generate more than $1 billion in sales for VMware this year, but most analysts believe the biggest moneymaking opportunities still lay ahead. In a report released Tuesday, Jefferies & Co. analyst Katherine Egbert said VMware appears to be traveling on the same lucrative trajectory as two of the industry's biggest success stories, Microsoft Corp. and Oracle Corp. Those software makers boast a combined market value of $364 billion 21 years after their IPOs. VMware's potential turned its IPO into one of the high-tech industry's most anticipated since online search leader Google Inc. went public nearly three years ago. Can you imagine, could even Diane have ever imagned that someday, maybe someday, they would be the one's to go this high. And also the fact that VMware might just about to be on its way to trounce the current giants! Very interesting years to come. Even days are keeping us busy! Forbes reporting...

While the market is heating up with VMware's IPO and XenSource's acquisition, Diane takes a moment to enjoy the fruits of her firm by ringing the bell. There is sure going to be a heated battle soon and times might be a lot different than they have been in the past, but no harm in taking a break and basking in the glory once in a while. Good job Diane (and the rest of the team) for providing us with a cool and innovative technology!

Day 2: VMware AfterMath(ematics): IPO REPORT: VMware Surges Almost 76% On Its First Day Of Trading CNNMoney.com - USA based VMware (VMW) sold 33 million shares at $29 a share as Wall Street embraced a profitable firm that specializes in technology that boosts the power of ... As VMware Goes Public, A Competitor Becomes An Acquisition Target CRN - Manhasset,NY,USA By Joseph F. Kovar, CMP Channel Server virtualization software leader VMware debuted on the New York Stock Exchange on Tuesday amid a flurry of speculation ... Investors Can't Get Enough Of VMware Forbes - NY,USA As VMware was set to have its initial public offering amidst the summer's turmoil, it seems only right that it should ring Tuesday's opening bell on the New ... VMware IPO Defies Falling Stock Market; Rises 76% InformationWeek - Manhasset,NY,USA One analyst predicts that the virtualization software field "will become its own ecosystem," with Microsoft and VMware vying to lead in th...

VMware At $29 Share; Analyst Warns Of IPO Drawbacks InformationWeek - Manhasset,NY,USA By Charles Babcock VMware spokesmen said late Monday that the firm plans to go to market Tuesday with a $29 per share price, positioning its IPO at the high ... See all stories on this topic Ahead of the Bell: VMware Houston Chronicle - United States 2007 AP NEW YORK -- A Jefferies & Co. analyst launched coverage of VMware Inc. with a favorable rating on Tuesday ahead of the company's first day of trading ... See all stories on this topic VMWare valued at $11bn VNUNet.com - UK Virtualisation specialist VMWare has been valued at $11bn (£5.5bn) following its much anticipated flotation this week. Parent group EMC, the global storage ... See all stories on this topic VMware IPO Adds Luster to EMC BusinessWeek - USA by Jawahar Hingorani From Standard & Poor's Equity Research The highly anticipated initial public offering of VMware has placed the spotlight on its parent...

SeekingAlpha reporting: The value of the IPO is also lot more than what was first estimated. Initially, the range of the IPO was expected to be only $23 to $25 per share, but was steadily raised to a range of $27 to $29 before finally pricing on Monday night at $29. According to TheStreet.com, the IPO was oversubscribed by as much as 25x the number of shares available. Check the original link .

VMware's prices surge as IPO debuts! It marked the year's biggest stock-market debut in terms of one-day gains, according to data from Thomson Financial. The previous record was held by Fortress Investment Group, which jumped 68% on its Feb. 8 unveiling. "This is a milestone for VMware," said Chief Financial Officer Mark Peek. "We still believe we're in the very early stages of virtualization, but this reaction says a lot about our market and our products." What's made VMware a hot commodity is its virtualization-software technology, which is used by companies to simplify how they manage their system hardware from their software applications. The technology allows more efficient use of business systems and can help cut down on those systems' costs. VMware bills itself as the leading provider of virtualization solutions, a category forecast to grow from $5.5 billion in 2006 to $11.7 billion by 2011, according to IDC. Check out the link .

"There's a lot of spotlight attention on that particular stock," said Francis Gaskins, president of research firm IPODesktop.com. "They almost have to surpass expectations not to disappoint people at this point," This week, EMC said it expected the VMware offering to price between $27 and $29 per share, up from its previous estimate of $23 to $25. "This deal seems to have a life of its own," said Sal Morreale, who tracks IPOs for Cantor Fitzgerald in Los Angeles. "Even in a market that has fluctuations, you can still have a deal that does really well. This appears like it will have a warm reception despite the market (drop), but it's a day-by-day situation until it prices," Morreale said. I am pretty sure that they will exceed the market expectations. And really you don't have to do any math here. Big vendors who are watching VMware, who in turn "apparently" threatens their cash revenue, ought to realize one thing: It is th...

Forbes reporting: 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 offe...

With giants like Cisco and Intel taking a stake out of the virtual pie, VMware seems pretty confident and goes ahead to hike up the price. VMWare boosted the expected price of next week's initial public offering to $27 to $29 a share from the previously expected $23 to $25. The Palo Alto, Calif., unit of EMC (EMC - Cramer's Take - Stockpickr - Rating) is due to sell 33 million shares next Tuesday in one of the most highly anticipated tech IPOs in some time. VMWare is expected to raise some $600 million in the offering, which comes just weeks after the company scored investments from tech titans Cisco (CSCO - Cramer's Take - Stockpickr - Rating) and Intel (INTC - Cramer's Take - Stockpickr - Rating). TheStreet.com reporting...