10 Tech Trends for 2010: #4 Virtualization (VMW, EMC, CTXS, CSCO, ORCL, JAVA, ELX, QLGC, FALC)
While virtualization isn’t new, the power and speed we enjoy today from servers, networks, storage systems, and even individual PCs have created new opportunities for virtualization to become a mainstream method to support our diverse and global working environment.
Based on the stock price of VMware (VMW), Wall Street is betting that virtualization will be a very big thing. While it’s pretty difficult to accurately model any company’s financial performance out far enough to justify these valuations, there are a few things we can assume today.
The first is that valuations are obviously high in the virtualization space. However, if you want to invest there, you can leverage EMC’s (EMC) majority ownership of VMware in a way that I think provides a more favorable balance of risk and potential reward than investing directly in VMW. Another company that has done well by increasing its focus on the virtualization space is Citrix (CTXS).
One of the big wildcards that will hit the table in 2010 is Cisco (CSCO), which has added servers to its lineup of networking products and partnered with EMC and VMware. I also expect Oracle (ORCL) to step up its move into consolidated data center virtualization once it completes its acquisition of Sun (JAVA).
Beyond the big guns, there will be a host of smaller companies emerging in the virtualization space. Both Emulex (ELX) and QLogic (QLGC) have introduced host bus adapters (HBAs) for virtualization applications. FalconStor Software (FALC) has introduced an interesting appliance for VMWare applications that provides continuous data protection (CDP) that allows users to avoid the need for mandatory data restores yet still meet data protection requirements. The vast majority of other companies specializing in this space are still private and more likely acquisition bait than IPO candidates.
In a new special report entitled 10 Tech Trends for 2010, NextInning.com highlights ten technology trends that investors will need to know about this year, as well gives opinions on several key tech stocks, including ones that are its favorites for the new year.
For access to the free report, examining each pick’s business activities, strengths, weaknesses, latest earnings report, and much more, visit NextInning.com. NextInning.com has covered the tech sector since 2002, and tech investors will also be interested in NextInning.com’s model tech portfolio and continued coverage of the sector. Recent topics covered include Google’s new Nexus One Phone and worldwide semiconductor sales.
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Virtual PCs (Capitalogix, 1/24/10)
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