With everything we have heard this week about virtualization changing computing as we now it, this thing appears to be undervalued. IMO
Everything I am hearing points to huge growth over the next year and that this technologly as well as others will create another tech boom. Forget P/E's, you have to look at this quarter after quarter of explosive growth.
Do some DD and you will find this is just the beginning!
"do you see VMW as a player potentially in the consumer space, at some point in the future.Or is it all corporations? "
At this time no. Consumers can download and use VMware for free and I really don't see why end users would need it. I personally do use a paid version, but I use it to test things like Clustered servers and High Availability setups since it is easy to clone systems and run multiple instances of an OS on a single computer. VMware is really nice for these things. Plus I can remote manage these systems if I need them running a GUI. It is a really sweet technology for this.
"Also, in your opinion, is the current revenue projection of $1.8bn 2008 conservative? thoughts appreciated."
I can't really comment on this just yet since I need to do more DD.
Anytime jrt, the company is interesting and the technology is interesting and if they are moving in an SSI "like" solution direction then it'll get REALLY interesting (well to me anyways since grids are an area of technology of particular interest to me)...
If you want a decent overview of the SSI cluster/grid concept I'm talking about ... there's a decent presentation here ..
When you start to consider the potential for the enterprise of this architecture it's pretty exciting.
Thanks Wayward, these are the kinds of insights that help me know what to look for that might change the valuation of VMW going forward. Thanks for your continued input and keeping the posters corrected on how VMW works. JT
One other thing gatechne, have you considered the recent VMWare acquisition of Dunes ? Difficult to discern but given Dunes portfolio it's possible that VMWare is looking forward to solutions in the SSI space with an eye toward data center virtualization (something Cisco has been talking about for a while). This IMHO is something that has the potential to be a enormously significant if they (VMWare) were able to "mainstream" it.
Something to talk about with your fellow engineers at the water cooler....
"VMs are especially nice to use when you have end users that need a multi OS environment. Why buy 3 systems with 3 OSes when that can be virtualized? We choose VM."
A scenario where virtualization can make sense to be sure, in heterogeneous implementations VMWare offers excellent flexbility.
"I am not sure VMs are really hype, if that is what you are referring to. "
The hype that I was referring to is based on some of the design proposals that I have seen put forward where it was clear the engineer started with the assumption of Virtual Machines and then of course the math and specifications acted to support the original assumption. This happens often with "hot" technologies (especially when you're dealing with young engineers) and leads to designs where function follows form (the form being the initial VM assumption and the function being constrained to fit the form). Such cases come up with my own engineering staff (although fortunately not often) as well as on those occasions where I get together with my colleagues from other corporations in my industry (good way to stave off the onset of NIHS).
"Are we trying to hash out whether VMs should be used?"
Not from my perspective, I have implemented many designs that include virtual machines in the past (including VMWare based designs) and the technology offers some highly beneficial attributes. Just offering alternative views with respect to where VM technology fits into the grand scheme of things, Personally I don't see VMWare and it's ilk as anything "revolutionary" (evolutionary IMHO), of course that could be a reflection of the fact that I've been an engineer for so long (over 20 years) and maybe I've just become staid. :shrug:
Warward and Gate,
It's nice to see a good exchange where you both come to some consensus and mutual respect. Wayward - thanks for clarifying "I think the STOCK is overvalued" - that's what I meant to say for you- hope you don't mind me reporting your views. I am hopeful through such exchange we can all arrive at a clearer view of VMW's current and future valuation. You have both given us food for thought but I must admit, although I give tech support, you are both way way over my head. Please keep posting both of you as you can be a great help in correcting various misunderstandings that may be posted here about the uses of VMware.
Gate, do you see VMW as a player potentially in the consumer space, at some point in the future? Or is it all corporations? I'd be curious to see what a techie's perspective is on the potential of this thing.
Also, in your opinion, is the current revenue projection of $1.8bn 2008 conservative? thoughts appreciated.
Personally, I think the use of VMs will expand and definitely follow the tread in multi processor multi -core systems. The leader in that space in Vmware and it always has been the best. I have used several to date and would choose Vmware over any that exist today even though they are not the highest performing VM out there since they run in user space. They are the leaders and they did it without being a public company. Meaning: they have more money to work with now. Does this mean the stock will do well? Who knows since reality never means anything when dealing with wallstreet. I am long however.
wow, don't have a clue what you guy's just said but it seemed informative. so what did you decide? vm's taking over the world or what. is this a must have technology. that will run on mainly vmw's programs