Cloud Computing: VMware Vs. Microsoft – The Next Chapter
Grazed from InformationWeek. Author: Charles Babcock.
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VMware’s fourth-quarter earnings, reported Jan. 28, set a record and came in ahead of analyst expectations. The next day, its stock, which had been trading at $99.10 just before the announcement, took a stunning hit, losing 20% of its value within a short time after the opening of trading. Several analysts had predicted VMware’s fourth-quarter earnings would disappoint because the market for virtualization products was nearly saturated and Microsoft was moving in to steal the customer base.
Instead, VMware beat the previous fourth-quarter’s earnings per share by 2% — at $0.47 per share. But the news that it was laying off 900 and realigning resources was taken as a bad sign. Maybe the skeptics had been right about VMware’s diminishing future. Or perhaps lost in translation was the statement that VMware would hire an additional 1,000 people and focus on its top business priorities…

