Thursday, April 23, 2009

VMware's Rapid Growth Starts to Stall -


Years of growth came to an abrupt halt in the first quarter for VMware Inc., as license revenue for its new software fell for the first time, leading to weak sales growth and a forecast of worse results in the current quarter.

VMware, based in Palo Alto., Calif., said customers remain interested in its virtualization software -- which allows one computer to run multiple operating systems --because of its cost-cutting potential. But Paul Maritz, chief executive officer, said "customers are reducing IT purchases in order to preserve cash." VMware said second-quarter revenue "will be flat or even down."

VMware's Rapid Growth Starts to Stall -

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