VMware IPO Debut Dazzles
08/14/07 - 05:02 PM EDT
Ivy Lessner
The company had the market to itself for years, but competitors are coming on strong. IBM(IBM Quote - Cramer on IBM - Stock Picks) and Microsoft(MSFT Quote - Cramer on MSFT - Stock Picks) now sell virtualization capability and management tools. Microsoft's System Center will ship this month and be added to the price list in October, providing virtualization management tools and support, said Larry Orecklin, general manager of System Center and Virtualization for the software giant.
And smaller companies, such as privately held Virtual Iron, which also counts Intel as an investor, could put price pressure on VMware's pricing and future revenue growth. Although VMware introduced virtualization in 1998, it has managed to sign up only a small fraction of the market because its technology is expensive, said Mike Grandinetti, chief marketing officer for Virtual Iron, based in Lowell, Mass.
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