Investors also hope that virtualization will help spur data storage sales by motivating companies to upgrade to so-called storage networks better suited to virtualized data centers.

As a result, VMware's third-quarter results, which come out after the markets close on Wednesday, will have a large influence on EMC's shares.

Tony Trzcinka says EMC's stock doesn't fully reflect the value of its 86% stake in VMware, leaving upside potential if VMware continues it skyward sales growth and stock price appreciation.

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