I work in this space and I can tell you without hesitation that no open source virtualization software will be utilized in this nation's biggest employer, i.e. the Federal Gov't.
Con't buy into the crap about competition. There is none. Microsoft pumpers claimed the same future dominance over WebEx in the online-meeting and collaboration space. I profited and watch WebEx's share march from $12 to $59 a share before being boughtout by Cisco.
Microsoft's only competitive offering is still in development (Server 2008). This software will not be released for months and will only be used in a beta mode at best.
VMWare has long since utilized a hypervisor that gives their software the best performance of all virtualization products across all platforms.
The setup is in place. VMW will continue to get hammered; all weak hands will leave; the stock will slowly climb back from whatever low it reaches; and one day EMC will sell its remaining position in the company at a very high premium. They will be able to do that because they own the market place and thus can orchestrate their own bidding war.
What you said was true, maybe the reason is because it is currently a non-player (when compared to VMW )
THis is based not on what sales liturature that you are reading, but the real test at real sites producing real results. Are there some sites out there, why sure, but you need to really look at what I said before you turn on the afterburners!
Is P/E the only constraint?
I see some other stocks that have high P/E and still selling
at high prices, even having comparable market cap as
FSLR PRICE=191.90 MARKETCAP=14.96B PE=140.07
GENZ PRICE=75.82 MARKETCAP=20.17B PE=150.14
LVS PRICE=87.23 MARKETCAP=30.98B PE=163.35
PSA PRICE=78.63 MARKETCAP=13.32B PE=802.35
most of them did pretty well last year and are
still doing good..
Thanks and Regards,
My only argument about that is that F5 was around for years during the growth and boom of the Internet era before NetScaler became a real product and Citrix bought them.
One thing to note if you didn't know already - what would you say is the close to the most visited website currently? Google and/or YouTube is most likely the answer. What drives them? The highest end NetScaler.
Maybe so, but the market is tiny compared to the VM space and F5 is a $2 billion company. My point is Citrix cannot even take F5 out, who remain with 70% of the market. Massive data centers are going to be and are being transformed with VMWare. Citrix has no capability to deliver or support that kind of product. And, they are already starting out with one massive disadvantage. Xen sucks.
Maybe so, but the market is tiny compared to the VM space and F5 is a $2 billion company. My point is Citrix cannot even take F5 out, who remain with 70% of the market. Massive datacenters are going to be and are being transformed with VMWare. Citrix has no capability to deliver or support that kind of product. And, they are already starting out with one massive dissadvantage. Xen sucks.
I wouldn't exactly call NetScaler a small time product....and by the time a company is big enough to consider GLSB and other application switching and load balancing and acceleration, Citrix doesn't have to try. F5 may have market, but its losing it to Cisco and Citrix slowly.
I don't hear about companies ditching Cisco and Citrix for F5's...but I hear about companies ditching F5 for NetScaler and CSS/ACE's...
Heh, leveraging presentation server to get through the door with Xen? Puh leese. Citrix can't even do that with small time products, like Netscalers against F5 networks.
You have to think BIG to think about this software...large, really large, enterprises won't even consider Xen, becuase VMWare is ALREADY in the house and is proven. Xen will remain a niche player after the world standardizes on VM. Too little, too late...
Even if that were true, I find it hard to believe that there is no competition coming up in this space, given that IBM (& perhaps DEC and HP etc (DEC is now part of HP)) has(ve) been doing this for many many years - though not on the Windows platform.
It becomes a function of future growth, valuation, technicals, perceived and real - current and future competitive offerings, perceived and real - overhang of stock sales by EMC.
Ladies and gentlemen, place your bets.
"though not on the Windows platform." What you really mean is I386 platform. And that is the rub. All of those other players have been doing it for years on THEIR platforms, which have completely different requirements, code and architectures. Not to mention that all of them in the past have had the vision of very few pieces of hardware, and very few virtual hosts. Nobody, literally, nobody, has the capability of doing this on I386 with large numbers of machines with even larger numbers of virtual hosts running on them. Microsoft, IBM, SUN, HP...not one of them has ever operated in this space. Microsoft can't even get off the ground with this kind of software proving that it is not trivial to do so....