Virtualization Heats Up: Is VMware Ready for More Intense Competition?
As virtualization becomes increasingly common in small and midsize businesses, VMware must contend with increased competition from both software and hardware companies. That’s tough news for the company that developed the virtualization market but good news for smaller businesses, which will have more choices of virtualization products.
VMware, the product and the corporation, has been hot. Company revenue has been on a steep incline: the vendor generated about $704 million in fiscal 2006 and $1.326 billion in 2007. Its software has become popular because it boosts the efficiency of server computers by letting one machine perform the work of many. Even though virtualization software has roots that date back to 1960s mainframes, the term has become synonymous with VMware. Once a niche technology, virtualization usage is becoming common in small and midsize businesses, which use it to reduce their server costs.