Bladewatch.com

http://money.cnn.com/news/newsfeeds/articles/newstex/IBD-0001-21294486.htm

The maker of so-called “virtualization” software that makes servers more efficient has seen its stock slide 30% from its peak of 125 set on Oct. 31 — despite a 13% gain on Wednesday. It has been a tough month for stocks, but not that tough. The tech-heavy Nasdaq composite is down 7% in that span.

The market’s overall woes are partly to blame, but analysts also point 15 growing worries that VMware VMW will face more pressure from emerging rivals, including software giants Oracle ORCL and Microsoft (NASDAQ:MSFT) MSFT.

An article talking about VMWare facing competition in the virtualization market, do check it out. I was having a conversation the other day with a colleague about this. VMWare will no doubt face competition in the virtualization market place, but for the moment, it has the momentum, it’s got the market exposure, the management tools.

Most importantly their annual events drive forward the virtualization message, enable people to talk about their products, the surrounding issues, they have community. I accept that community might not be the way to earn moeny directly – but having an open dialogue where the users can talk about their issues, share their experiences is invaluable, and great for branding and support.

On the same token, one firm, one customer might use different hypervisors (virtual platforms) for different tasks, whether its’ VMWare for that testing environment, Xen for Linux or xVM for clustering/failover.

Will VMWare face competition – Yes, but this has to be a good thing for the consumer, and I suspect for VMWare, a little competition is good for the soul, keeps the innovation of the platform, and maintains customer focus.

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