VMware's Dominance Questioned

SAN FRANCISCO -- VMware(VMW Quote) continued to bleed Thursday as some of its smaller competitors questioned its hold on the market.

Stock in the Palo Alto, Calif., virtualization company fell $13.25, or 12.9%, to $89.25 in late trading. That makes for a 27% drop in the high-flying stock since Nov. 1.

In a discussion on virtualization Wednesday, Goldman Sachs analyst Sarah Friar posed the question of whether VMware, the "big gorilla," has an unbreakable hold on the market.

"It's not a foregone conclusion that they're the gorilla forever," said Edward Walsh, CEO of privately held virtualization competitor Virtual Iron. ...