VMware raises curtains on new product bundles and pricing models

VMware, a virtualization and cloud computing developers, showed off new product bundles, clouding packages and new pricing models in wake of the rapidly growing market.

VMware is one of the biggest companies that specialize in cloud computing infrastructure. Moreover, VMware also develops tools that virtualize physical servers to run on different operating systems and software at the same time.

Cloud computing has caught root in the last couple of years and has been adopted by a number of corporate entities for rapid access and cost-efficiency. Companies like Oracle, SAP and Hewlett-Packard are investing heavily in such technology solutions.

Therefore, VMware is trying to capture as much market share before it get mature. VMware is endangered by the companies that are investing to build new data centres.

“We believe there is risk of a growth hand-off issue whereby growth in core server virtualization slows before new products emerge as a meaningful driver,” said Citigroup analyst Walter Pritchard in a report published on Monday. “The question is timing as server virtualization matures and new markets have a less certain ramp.”

In addition, the company rescheduled its pricing model after a strong and thorough customer feedback.

“The change in pricing is interesting in light of the company’s increased focus on selling bundled solutions, vCloud Suites, since the company seems to be placing more weight on the value of its infrastructure and management tools vs. the virtualization platform,” said Jefferies analyst Ross MacMillan in a report. “We think the company is going through a transition, which creates uncertainty on near-term growth and we remain hold.”

Despite the fact that VMware is making profits, its stock has seen sell offs of late. Almost 18 percent of the stock had been shaved off this year. However, the share price still rose to nearly 10 percent. VMW stock was down 1.4 percent on Tuesday.

Short URL: https://www.newspakistan.pk/?p=31815

Posted by Usman Khalid on Aug 30 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.