The market for server virtualization software is young and should expand quickly over the next few years, the analyst said. He said VMware holds 85 percent to 90 percent of the market now, and could control a majority of the market even after competitors close the gap.
Some of Renouard's industry contacts were far more optimistic. He said they suggested VMware software should be on "90 percent of all servers."
For now, he said, the company's products are at least 18 months ahead of the nearest competition, a free product from Microsoft Corp. Other companies are struggling to attract users.
"VMware offers a multitude of product offerings and features, and has seen such rapid growth due to a large first-mover advantage over competitors," he said. "In total, we believe market growth supports continued rapid expansion of VMware revenues for the next several years."