VMware raised close to a billion USD in an IPO second only to Google in recent IT history. Here’s a bit more details on the stock offering and VMware’s solutions.
Analysts say VMware’s shares should soar to a significantly higher value than the opening price. “This could be in the $34-to-$35 range at the end of the trading day,” said Brian Babineau, a Silicon Valley-based analyst with Enterprise Strategy Group. “Their business model and their growth due to their technological competitiveness is extremely well received by customers and the marketplace as a whole.
“This has more of a Google feel than a traditional enterprise software company,” he said. “They’re one of the only tech companies that have shown upward of 80 percent annual growth consistently in the last few years.”
Matrix Partners venture capitalist David Skok said VMware is prospering from “a white-hot market” in the virtualization software that it helped pioneer. “This is the hottest thing going right now in the computing world,” said Skok, a director of VMware rival Virtual Iron.
Virtualization represents a software solution to a hardware problem, enhancing the computing power and flexibility of information-technology systems, while reducing energy costs.