VMware (NYSE:VMW) on Tuesday unveiled its new application
platform vFabric 5 following a chain of acquisitions that include
SpringSource and Digital Fuel. VMware also acquired Socialcast
and SlideRocket in the past two months.
We currently have a
$94.85 Trefis price estimate for VMware
, about 5% above the current market price.
vFabric 5 and Cloud Foundry
Earlier in April this year, VMware announced the Cloud Foundry,
an open source Platform-as-a-Service (PaaS) platform that supports
public clouds and private clouds regardless of whether the
underlying server runs VMware or not. This placed VMware in
competition with other PaaS providers like Salesforce.com (
), Microsoft (NASDAQ:MSFT) and Rackspace.
vFabric 5 is an on-premise Java application platform designed to
run atop VMware's vSphere hypervisor and virtualization-management
software. It is a direct competitor to middleware software provided
by IBM and Oracle products that help connect information in huge
enterprises. In 2010, IBM generated nearly $25 billion in revenues
through its middleware software offerings, which gives an idea of
the size of the opportunity for VMware if it can penetrate this
While VMware controls the virtualization of some 80% of servers
worldwide, it is still very small player in the application
platform market. As VMware expands its platform strategy, it will
need a better way to integrate with public cloud services to
integrate cloud and on-premise offerings.
We currently estimate that Java Application Tools account for
less than 1% of our
price estimate for VMware
. However this could change drastically as VMware expands into the
application platform market over the years.
See our full analysis for VMware