September 2006 (Revised September 2007)
Case
HBS Case Collection

VMware, Inc. (A)

By: David B. Yoffie, Ward Bullard, Nikhil Raj and Suja Vaidyanathan

Format:Print
| Pages:23

Abstract

VMware, Inc., the first company to crack the software virtualization market, faces new challenges from competitors' plans to bundle free virtualization solutions in operating systems. VMware, acquired by data storage giant EMC Corp. in 2003, has delivered top-line growth from 2002 to 2005 that is comparable to the fastest-growing enterprise software companies in history. However, emerging competitive solutions from Microsoft and the open-source community threaten to hinder the company's long-term growth potential. Outlines virtualization technology and the dynamics that affect its market; covers the history of VMware; discusses key competitors; and analyzes potential strategic responses by VMware to emerging competitive threats.

Keywords

Technological Innovation; Growth and Development Strategy; Market Entry and Exit; Open Source Distribution; Competition

Citation

Yoffie, David B., Ward Bullard, Nikhil Raj, and Suja Vaidyanathan. "VMware, Inc. (A)." Harvard Business School Case 707-013, September 2006. (Revised September 2007.)