Will VMware's sales double forever?
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Ask Microsoft Analysis My friends in the financial industry keep lobbing the same question - how long can VMware keep up its growth? The answer to that query revolves around Microsoft and how competent it decides to be.â¦
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Quarterly sales of servers running the Linux operating system topped $1 billionÂ for the first time during the third quarter of 2004, analyst company IDC reported Wednesday. With year-over-year revenue from Linux server sales up 42.6 percent, Linux accounted for more than 9 percent of the $11.5 billion in servers sold worldwide during the quarter, which ended Sept. 30, the research firm said.ADVERTISEMENTSolaris 10(TM) OS: Position your business ten moves ahead.Solaris 10 OS has arrived and provides even more reasons for the world's most demanding businesses to operate on this, the leading UNIX platform. Like the fact you can run Linux and Solaris applications side-by-side and run the same OS on SPARC(R), AMD Opteron(TM), and Intel processor-based systems. Discover more reasons and how Solaris 10 OS can move your business ahead today.
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Sales of server systems rose 7.7 percent globally in the second quarter to $11.55 billion as demand for Information Technology remained strong after a three year downturn, market research firm Gartner said in a statement.
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Continuing the thread on commoditization of scalable server software, the third installment. Yesterday, Matt Tucker from the OpenFire community, said: "I'm not sure that S3 magically kills off the scaling priests. It certainly makes it easy to turn on more storage resources, but writing an application to scale efficiently across multiple virtual machines is no easy task." To which I responded... It won't make scaling obsolete, but what it does do is commodify it. Right now I can't buy a Jabber server that scales without also hiring someone who will scale it for me. But in a few years I should be able to buy a Jabber server that, when it needs more CPUs, just asks for them all transparently to the user, the same way my word processor asks the OS for more memory today. I remember word processors that didn't do memory management, you got a 64K buffer and that's it. One document. When you filled it up, you started another. Technology will go forward and scaling won't be a black art, it'll be something built into the software you license.
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VMware Inc., known for its virtual machine technology for servers and workstations, is turning its attention to the client space. The Palo Alto, Calif.
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Virtual reality, oh ho ho As the virtualization market continues to expand, concerns over incompatibility between virtual machines from VMware, XenSource and Microsoft are unsurprisingly growing with it.â¦
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A Microsoft-sponsored study says that Windows Vista will generate some $70 billion in revenue and create up to 100,000 jobs in the first year of its release. The report also forecasts rapid and widespread adoption of the OS.
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The Story: Look in the mirror, Mr. or Ms. IT buyer. You?ve got more muscle than ever ? and you did it without steroids.[ Slideshow: 2007's top underreported tech stories ]                                                    Despite the wave of consolidation sweeping the industry, buyers have actually gained more leverage than ever when it comes to making deals with their vendors, notes a PricewaterhouseCoopers analysis. ?Software buyers need to realize that the pendulum is beginning to swing in their favor and that there are an increasing number of alternatives in today?s software market,? concurs Gartner analyst William Snyder (no relation to this writer).There are a lot of reasons for the swing, but one certainly stands out: The shift to SaaS (software as a service). The poster child for this phenomenon is Salesforce.com. "Both its development and delivery models are having a disruptive effect on the entire CRM market,? notes Forrester Research analyst Bill Band. But it?s not just Salesforce: By 2011, Snyder says, fully 25 percent of all new business software will be delivered as a service as Salesforce and other vendors push upstream from the small-business market. Already, SaaS providers make up the majority of sales for several segments of human resources applications, and is well-established for supply-chain management.[ InfoClipzflash video primer: Software as a Service ]SaaS is just the first wave of services that are pushing pricing power over to buyers: The more recent move to Web services and the beginnings of SOA (service-oriented architecture) deployment are encouraging the use of modular software, which in turn cuts development costs, makes it harder for vendors to sell expensive suites, and lessens the need for expensive consulting services.And yet another factor is upping buyer?s power, notes Gartner?s Snyder: the emergence of third-party support options that are reducing software?s TCO (total cost of ownership). ?Maintenance services have been a quasi-monopoly for software vendors,? he said. ?For many years, only the software vendor had rights to the source code of the critical components of the system. This made it impossible to go to an open, competitive market to obtain upgrades, services and support, which in turn made it impossible to negotiate maintenance fees.?Interestingly another software trend ? the growth of virtualization ? is beginning to affect pricing for hardware, particularly servers. A report by Infiniti Research suggests that server shipments will start declining in 2008: ?The server market of tomorrow will be a value game and not a volume game.? And that means better pricing for hardware, too.Don?t let your head swell too much, but Gartner vice president Mark McDonald credits ?savvy CIOs? for containing costs that were once out of control. ?They?re saying, ?I want you to implement in a way that gives me the advantage over my competition? ? and they?re not accepting the traditional vendor model, which favors homogeneity and the economics of scale.?The Bottom Line: Chances are that you?re looking at SaaS, Web services, SOA, virtualization, open source, and other technology-delivery methods for a variety of specific reasons, without realizing the cumulative effect is to give you more pricing power. Now that you?ve got the power, use it.Complete list of 2007 underreported tech stories: 1.? Java is becoming the new Cobol 2.? Sun Microsystems is back in the game 3.? Hackers take aim at Mac OS X 4.? There are some threats you can worry less about 5.? Companies may have found a way around H-1B visa limits 6.? Open source?s new commercial strategy 7.? End-to-end Ethernet finally arrives 8.? Blade servers arrive for the masses 9.? BI is dead; long live BI 10. Balance of power shifts to software buyers
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Pots and kettles go flying With an IPO and a major server virtualization battle looming, VMware has turned aggressive in its fight with Microsoft.â¦
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Circuit City's sales predicament is worrisome -- when will it recover?
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EMC Corp. of Hopkinton plans to turn virtual software into real cash. The company will sell 10 percent of its California software subsidiary VMware Inc. in an initial public offering this year. VMware dominates the field of virtualization software -- programs that let a single computer do the work of several machines.
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com December 15, 2004, 2:07 PM PT. Sales of new and used PCs running the Linux operating system will reach $10 billion by 2008, market researcher IDC predicted Wednesday.
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Buys board seat to watch IPO Reinforcing its status as the software darling of the moment, VMware has secured a whopping $219m investment from Intel.â¦
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Resistance to Vista was expected among the large companies that have leverage with large PC vendors, but even in the consumer and SMB ranks, the clamor for XP is significant. The beneficiaries? Possibly, "white-box" system builders and direct-sales channels.
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(InfoWorld) - Virtual Iron and XenSource both are introducing new virtualization software to undercut on price the dominant player in the field, VMware. On Monday, Virtual Iron is set to start offering Version 3.1 of its enterprise-class virtualization platform for a license price of $499 per socket, which is less than 20 percent of the $2,875 per socket price for a comparable VMware license, according to Virtual Iron. Virtual Iron argues that VMware's pricing is a barrier to more widespread adoption of virtualization in data centers, citing IDC research that only 6 percent of data center operators deploy any type of virtualization. Also Monday, XenSource introduced new and upgraded virtualization products, also at sub-$1,000 prices. Both XenSource and Virtual Iron build their proprietary products on top of the open-source Xen platform for virtualization hypervisors. A hypervisor is technology that makes it possible for one computer to run multiple operating systems at the same time. VMware's products are not based on open source. Virtualization refers to software and other system management tools that are used to better utilize servers. Virtualization makes it possible for one physical server to run multiple applications simultaneously. Advanced virtualization features include tools to seamlessly move computing workloads from one physical server to another, set up infrastructure and test new software. Revenue at VMware, a wholly owned subsidiary of storage vendor EMC, grew 86 percent in EMC's fiscal third quarter to $188.5 million. If that pace keeps up, VMware's annualized revenue would be $750 million, VMware said. Virtual Iron and XenSource intend to slow that pace. "We are taking a very aggressive stand on pricing," said Mike Grandinetti, chief marketing officer for Virtual Iron. The Charlotte Observer newspaper in North Carolina uses Virtual Iron. It took 45 minutes to run a particular job on its legacy Unix-based servers, said Geoff Shorter, the Observer's IT infrastructure manager. VMware completed the same job in 11 to 13 minutes, but so did the less expensive Virtual Iron. The license for the high-end VMware product costs $5,750 to run on a dual-socket server, Shorter said. Virtual Iron's license is $499 per socket, so the total cost for a dual-socket machine license would be $998. Pricing for XenSource's XenEnterprise starts at for $488 for an annual subscription license for a dual-socket server or $750 for a perpetual license. XenServer for Windows, introduced Monday, sells for $99 per dual-socket server, per year. It has fewer features than XenEnterprise. "Our intention is to dramatically shift the landscape under VMware," said Simon Crosby, XenSource's chief technology officer. Virtualization is following a classic economic model of an early mover dominating a market and charging a premium, soon followed by challengers competing on price, said Gordon Haff, principal IT advisor at Illuminata Inc., a technology research company. Haff said enterprises that have deployed VMware are seeing a positive return on their investment despite the price and he doesn't think price alone is keeping enterprises from adopting virtualization. "Even if virtualization software were free, it wouldn't become ubiquitous because of the complexity of the implementation," he said.
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The company sees a huge increase in sales, but can it last?
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Forrester Research projects US online retail sales will more than double over the next six years, reaching $316 billion by 2010. According to a new report from Forrester Research, Inc.