This year will be decisive for Red Hat and VMware cloud software.
Translation of a small note by Dana Blankenhorn, a well-known industry analyst :
Sooner or later, cloud computing will be more profitable for enterprises than using their own servers, thanks to the consolidation of hardware and lower costs for maintenance personnel and software. Even on cloud software.
And there are software companies whose profits will increase from such a transition. These are companies that make cloud computing software. In particular, it will be beneficial for Red Hat and VMware, two public companies, leaders of cloud software.
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VMWare has become known for its hypervisor, which allows you to run Windows programs on Linux, or vice versa. The company has built a complete cloud-based product line around the vSphere, and although it declares its commitment to open source, the VMware software stack is too similar to the Oracle approach of imposing a single supplier on the client. However, if you are an investor, this is a good way to ensure a good return.
Red Hat, which has performed well in the enterprise Linux market, is banking on its own cloud stack. PaaS OpenShift complements the Red Hat Linux products well, due to the fact that you can quickly transfer your applications to the “cloud” or easily create new cloud products.
Both VMware and Red Hat have, on the one hand, good prospects in the cloud software market, and on the other hand, doubts about the readiness of this market segment (VMWare, in fact, is not an independent company, since 80% of its shares owned by EMC, and Red Hat occupies a very small market share). Nevertheless, these are the most obvious contenders for cloud leadership, and the shares of both companies have risen significantly lately.
However, this year should show whether the hopes of investors come true and whether there will be a high profit growth and market expansion during it. Considering that investors are looking at prospects, and not at what is at the moment - high expectations are being placed on both companies.
The problem of both companies lies in the fact that both the volume of sales and the increase in profits will certainly become a little less dynamic than now. Companies are growing, but now not so dramatically. So, if you have shares of these companies, they will remain at a high level, but do not expect the same rapid growth as in 2012.
Sooner or later, cloud computing will be more profitable for enterprises than using their own servers, thanks to the consolidation of hardware and lower costs for maintenance personnel and software. Even on cloud software.
And there are software companies whose profits will increase from such a transition. These are companies that make cloud computing software. In particular, it will be beneficial for Red Hat and VMware, two public companies, leaders of cloud software.
')
VMWare has become known for its hypervisor, which allows you to run Windows programs on Linux, or vice versa. The company has built a complete cloud-based product line around the vSphere, and although it declares its commitment to open source, the VMware software stack is too similar to the Oracle approach of imposing a single supplier on the client. However, if you are an investor, this is a good way to ensure a good return.
Red Hat, which has performed well in the enterprise Linux market, is banking on its own cloud stack. PaaS OpenShift complements the Red Hat Linux products well, due to the fact that you can quickly transfer your applications to the “cloud” or easily create new cloud products.
Both VMware and Red Hat have, on the one hand, good prospects in the cloud software market, and on the other hand, doubts about the readiness of this market segment (VMWare, in fact, is not an independent company, since 80% of its shares owned by EMC, and Red Hat occupies a very small market share). Nevertheless, these are the most obvious contenders for cloud leadership, and the shares of both companies have risen significantly lately.
However, this year should show whether the hopes of investors come true and whether there will be a high profit growth and market expansion during it. Considering that investors are looking at prospects, and not at what is at the moment - high expectations are being placed on both companies.
The problem of both companies lies in the fact that both the volume of sales and the increase in profits will certainly become a little less dynamic than now. Companies are growing, but now not so dramatically. So, if you have shares of these companies, they will remain at a high level, but do not expect the same rapid growth as in 2012.
Source: https://habr.com/ru/post/136405/
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