If you don't understand the value of virtualization software, then you really don't understand storage technology. VMWare produces virtualization software that goes BEYOND the server virtualization that analysis ONLY talk about.
VMWare virtualizes entire datacenters, from NAS/SAN attached storage to enterprise desktop enviornments. Microsoft, Xen, Oracle are jumping in and don't have near the type of product.
They are making money hands and fist and the fact that they will continue to do so in the next couple of years to come will bring in buyers.
Here is one reason all you knowledgables ignore. If virtual machines are sharing the same hardware and if all the data is still on the same hardware, there are security implications. You cannot convince many datacenter operators that the virtual machines are indeed really separate, unless you have virtualization enforced in hardware.