Red Hat Will Thrive Over The Next Decade

By Dana Blankenhorn: VMware (VMW) managed to tank the whole cloud sector yesterday, with weak guidance sending the stock plummeting over $21/share in a single session.

Trefis submits: VMware (VMW) on Tuesday unveiled its new application platform vFabric 5 following a chain of acquisitions that include SpringSource and Digital Fuel. VMware also acquired Socialcast and SlideRocket in the past two months. [1] We currently have a $94.85 Trefis price estimate for VMware, about 5% above the current market price. vFabric 5 and Cloud Foundry

Geoffrey Rocca submits:As I mentioned in one of my other articles, I have taken the view of James Montier that an astronomically high price/sales ratio is a reliable indicator of overpriced stocks, because at a certain point there is no capital structure or profit margin that will justify the current price. Furthermore, the degree of growth required to justify a company at that price would be almost impossible to realize.

By PowerOptions:Red Hat, Inc. (RHT) provides open-source software and services to the enterprise computing market. It is the most recognized open-source brand in the world. Their most popular solutions are Red Hat Enterprise Virtualization, JBoss Enterprise Middleware and their Red Hat Enterprise Linux (RHEL) operating systems. Much of the company's revenue is generated through subscriptions and in the training of these products.

IBM last week said that it was going to use a cloud technology called OpenStack in a big, big way.

By Dana Blankenhorn: There are two growth vectors for the cloud, software and services. If you are looking for proxies on both, they are Rackspace (RAX) for services and Red Hat (RHT) for software.

By Dana Blankenhorn: Making code open source is proving to be a key weapon in the race to profit from clouds. The latest proof of this is Citrix' decision this week to make Cloud.com's Cloudstack open source, starting with version 2.2.10.