More growth virtualization software seems to be a reality for VMware (NYSE: VMW),I said Srini Nandury,an analyst at Summit Research.In a research report Thursday, Nandury that has coverage VMware colleague Richard Williams,improved inventory VMware recommendation from hold to buy, citing the possibility of sustained growth in the market.VMware server virtualization is the leading provider of virtualization software that can run a single server to reduce multiple operating systems and applications,increase flexibility and operating costs, including the number of servers required.
As VMware moves to other areas such as software defined networking, where it rivals such as Cisco Systems (NASDAQ:CSCO) competes server virtualization remains a key growth driver for the company,says Nandury. He has a price target of 105 VMware securities,a fraction was reduced in morning trading on the stock market today, some 85 VMware stock has languished in the past year and is up 18% over this period.
We believe that server virtualization continues to drive growth,given that only 30% and 40% of CPUs (central processing units) is virtualized (but 85% of the burden of virtualized work) he wrote.This means that many applications critical mission are still bare-metal server vs.virtualized used.This mission-critical applications probably given the maturity of VMware virtualized solution (ie hypervisor and management tools) to provide an opportunity to continue in the business.
Because VMware price is based on a per CPU,we believe there is great headroom to increase the income of (the) next few years, more and more servers are virtualized bare metal.VMware is scheduled to report Q1 results after the market closes on Tuesday.Challenges of the company include a new technology called software Docker container.
Currently Docker container is still a danger because the management of ecosystems is still under development, Nandury wrote.Given the continued investment of venture capital,the focus of the open source community and ecosystem partners, we believe,robust management tools developed over time share / revenue.Also Thursday investment bank market impact of Monness Crespi Hardt wandered VMware VMware price target of having 112 of 102,according to evaluations network analysts.