The Register is advocating EMC to spinoff VMware. Here is some of their reasoning...
In its most recent quarter, VMware reported revenue of more than $100m for the first time in its history. EMC noted that it's "continuing to be one of the fastest-growing major software businesses in the world." No other start-up in the server software realm enjoys such a stranglehold on the market leader position or the incredible margins VMware achieves by selling its products for thousands of dollars per processor.
As a comparison, Red Hat recently posted second quarter revenue of $65.7m. That marked a 42 per cent year-over-year rise and sent Red Hat's shares up to 20 per cent higher in just 24 hours.
One year ago, VMware pulled in $61m, which was a 200 per cent rise over its pervious third quarter. Moving from $61m to this year's $100m also gives VMware more than a 60 per cent year-over-year revenue surge - far better than say, Red Hat.
VMware ownership is certainly an incredible value proposition. Should it fly free? Think about it and leave your thoughts.