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VMware Inc.(VMW - Snapshot Report) is relying on strategic partnerships to fuel growth. The company recently entered into a partnership with Pivotal to jointly develop a commercially supported hybrid Platform as a Service (PaaS) product called Pivotal CF, which is based on the Cloud Foundry platform.

Pivotal provides application and data infrastructure software. It helps in agile development services, and also supports data science consulting. Some of the main offerings of Pivotal include its Enterprise PaaS product, which is powered by Cloud Foundry.

This brings us to Cloud foundry, which becomes an important topic of discussion. With the help of Cloud Foundry it becomes easier for organizations to build, test, deploy and scale applications. Moreover, this particular technology makes the whole process faster.  Cloud Foundry is a new concept driven by Pivotal.

VMWare is taking the help of these technologies to develop Pivotal CF. This would be available on VMware’s vSphere and the vCloud Hybrid Service. The partnership will help customers to take full advantage of the PaaS.

The open source Cloud Foundry platform is growing fast and includes support for vSphere. This considerably reduces time to market for new applications that are deployed on-premise and will make VMware solutions much more acceptable to end users.

We believe that VMware’s ability of innovating new products, entering into new technological collaboration and solutions, along with its existing product pipeline and strategic investments will enable the company to drive its top line over the long term.

This apart, the Virtualization space is also providing new opportunities every day, and companies such as BMC Software and Computer Sciences Corporation (CSC - Analyst Report) are also implementing different strategies to grab a major share of this business.

However, we believe that sluggish North American and European markets coupled with modest IT spending environment and stiff competition from Microsoft Corp. (MSFT - Analyst Report) and Citrix Systems Inc. (CTXS - Analyst Report) are the headwinds going forward.

VMWare has a Zacks Rank #2 (Buy).

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