VMWare (VMW) has the hot hand in virtualization and Microsoft (MSFT) wants to take that away. VMW shares have almost tripled since their IPO three months ago."It is the hottest trend in IT," a Gartner analyst told MarketWatch "Ultimately, the changes in virtualization are about improving value to customers."
Virtualization is basically a software-based technology that allows software applications and operating systems to be separated from their hardware systems and shared over servers and storage infrastructure.
Microsoft is launching its own virtualization software, dubbed Viridian, next year. And, Redmond has a very big advantage over VMW. Its global installed base of Windows should give it an entry point for almost every company and enterprise being courted by VMWare.
If the Microsoft product lives up to expectations, VMW shares can’t keep defying gravity.
Douglas A. McIntyre