VMware, based out of Palo Alto, California, has been termed as an entity to watch by Barclays. Raimo Lenschow, an analyst at Barclays has upgraded the virtualization software company to overweight. This is despite caution from others regarding cloud computing. He argued that uncertainties about cloud computing were exaggerated and the potential for stable growth is assured. This is after the company went into partnership with online retail giant Amazon.
The dramatic shift to the public cloud is fundamental for the industry and VMware was seen as lagging behind in the move to the new infrastructure. However, it is now clear that the virtualization software can be compatible with the cloud and they could potentially work together to bring out new capabilities.