VMWare Faces Challenge From Software Rivals, Barron’s Reports

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.

Microsoft Corp. and Citrix Systems Inc. are challenging VMWare’s corporate data centers, 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.

To contact the reporter on this story: Joe Sabo in New York at jsabo@bloomberg.net.

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