Fed Agencies Adopt VMware Solution - Analyst Blog
August 22 2011 - 1:45PM
Zacks
With the growing need for secure mobile and cloud computing
solutions, several US Federal agencies have adopted VMware
Inc.’s (VMW) desktop virtualization and desktop management
application VMware View. The Federal agencies face a daunting task,
as their work entails operations across varied environments and
devices.
VMware View allows the federal IT department to manage desktops
securely and access applications any time through a variety of
devices ranging from PCs, or laptops provided by the government, to
tablet computers. The processes are automated and efficient. The
cloud-based service is secure and cost effective.
Additionally, VMware View also enables federal agencies to
accelerate their response time by retrieving sensitive data that
has been stored securely within the agency firewalls. This not only
eliminates the risk of data breach in case of the loss of an
operating device such as laptops or tablets but also solves
location constraints.
VMware has been working on server virtualization and it controls
nearly 80% of the market globally. This would help the
organizational workforce access data irrespective of the location
from which the data query originated, thereby increasing
productivity through new-age collaboration and communication
models.
With the growing adoption of cloud computing and desktop
virtualization techniques, VMware has been working for better
end-user computing services by providing secure and efficient data
management that is the prime requirement of clients.
Enterprises that are shifting to the cloud need proper
infrastructure, which VMware provides through its four key
products: vSphere that helps in coordinating and automating
computer storage and networking; vShields for virtualized Edge
functions and security; vCloud Director to enable cloud
functionality; and vCenter Operations Suite for management.
We believe VMware is the biggest beneficiary in the adoption of
cloud computing and the corresponding shift in IT spending. The
server virtualization market possesses huge potential and VMware
continues to expand its presence in the datacenter cloud management
and security segments.
The company faces competition from Citrix Systems
Inc. (CTXS) and Microsoft Corp. (MSFT)
that is likely to act as a headwind going forward.
We have a Neutral recommendation on VMware over the long term
(for the next 6 to 12 months). Currently, VMware has a Zacks #2
Rank, which implies a Buy rating on a short-term basis.
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