VMW is rewriting the way data centers work and they are now much more than just server or desktop virtualization.
Key point is this:
Their core product, vSphere, is the server virtualization platform for 90% of the Enterprise customer base .
1. Their renewal profits on this install base are massive. Enterprise customers don't switch to competing products as VMW keeps innovating and managing the pricing to stay ahead of open source or MSFT Hyper V.
2. More importantly for new license growth - vSphere's market share makes VMware extraordinarily well positioned to sell their management tools into this massive install base. They have been going after the $15B market for IT Management tools dominated by HP, CA, BMC and IBM. Their tools plug into vSphere and are cheaper and faster to deploy that the old guard. Especially with how they are bundling these tools into upgrades and discount renewals when combined with new product purchase.
Vmware is still one of the fastest growing Software company over $1B in the history of IT. I would not bet against them.
You really ought to better understand the market opportunity and their position before bashing the company