VMWare ( VMW), majority owned by EMC ( EMC), sells desktop and server virtualization software and cloud-based software to corporate customers. VMWare competes with Microsoft ( MSFT) and Citrix ( CTXS) in the virtualization market, which it leads with around 46% share globally.VMWare posted strong results for the second quarter of 2010, driven to a great extent by rising maintenance and service revenues. We expect that VMWare will continue its strong performance for the remainder of 2010. Accordingly, we have upgraded the Trefis price estimate for VMWare's stock from around $63 to $75. Following are the reasons for our upgrade.