VMWare Inc., which makes software that that helps corporate data centers run more efficiently, may decline amid growing challenges from rivals, Barron’s reported, without citing anyone.
While VMWare had a breakthrough with software that let servers run multiple operating systems, a global shift has begun toward so-called cloud computing, the weekly newspaper said in its Sept. 13 edition. That field is where the Palo Alto, California-based company is a small player, compared with providers such as Amazon.com Inc., Rackspace Hosting Inc., Barron’s said.
Rick Jackson, VMware’s chief marketing officer, told Barron’s the market VMWare serves is immature and near a “tipping point,” which will lead to a more than doubling of demand for the company’s software.
VMWare, 80 percent-owned by EMC Corp., the world’s biggest producer of storage computers, rose 36 cents to $84.90 yesterday in New York Stock Exchange composite trading. The shares have doubled this year.