VMWare Proves the Power of First Mover

This post might be my final post re VMWare (VMW) because... well, I do not want to overstay my welcome and bore you as I did with my drum-beating for Google (GOOG).

But what a way to exit -- a very bullish commentary from THE ECONOMIST (print edition) that offers crucial insights into VMWare: its products, its competition, and the power of being the first mover...

"The ultimate goal of virtualisation is to make a data centre, or even several of them, look like a single pool of computing, storage and networking resources that can be allocated as needed... Yet for the vision to become reality, something is still missing: a set of tools to manage all these computing resources—an operating system for the data centre, if you will. VMware is well on its way to building just that... it has become one of the fastest growing software firms, a fact that explains its blockbuster flotation last August (EMC (EMC) still holds a majority stake). Although VMware is best known for its hypervisor, it now makes more money from a suite of other products, such as software to manage virtual machines. And it has been successful at persuading other computer firms to make their wares work well with its products, thus building an ecosystem around its emerging platform. How was it possible for a newcomer to leave incumbents such as HP (HPQ), Microsoft (MSFT) and Sun Microsystems (JAVA) in the dust?..."

Full Disclosure: Long the shares of VMWare.

Comments

[sunrises]

Hello,
Vmw is still a strong company with it's innovations.
Can we expect VMW go up to approx $89 anytime soon?

[Long-ShortGuy]

Looks like it's a first mover on the way down today
:-)

Not that your comments about the company's business aren't correct. It's just that companies and stocks aren't the same thing.