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Fed Agencies Adopt VMware Solution

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With the growing need for secure mobile and cloud computing solutions, several US Federal agencies have adopted VMware Inc.’s (VMW - Free Report) desktop virtualization and desktop management application VMware View. The Federal agencies face a daunting task, as their work entails operations across varied environments and devices.

VMware View allows the federal IT department to manage desktops securely and access applications any time through a variety of devices ranging from PCs, or laptops provided by the government, to tablet computers. The processes are automated and efficient. The cloud-based service is secure and cost effective.

Additionally, VMware View also enables federal agencies to accelerate their response time by retrieving sensitive data that has been stored securely within the agency firewalls. This not only eliminates the risk of data breach in case of the loss of an operating device such as laptops or tablets but also solves location constraints.

VMware has been working on server virtualization and it controls nearly 80% of the market globally. This would help the organizational workforce access data irrespective of the location from which the data query originated, thereby increasing productivity through new-age collaboration and communication models.

With the growing adoption of cloud computing and desktop virtualization techniques, VMware has been working for better end-user computing services by providing secure and efficient data management that is the prime requirement of clients.

Enterprises that are shifting to the cloud need proper infrastructure, which VMware provides through its four key products: vSphere that helps in coordinating and automating computer storage and networking; vShields for virtualized Edge functions and security; vCloud Director to enable cloud functionality; and vCenter Operations Suite for management.

We believe VMware is the biggest beneficiary in the adoption of cloud computing and the corresponding shift in IT spending. The server virtualization market possesses huge potential and VMware continues to expand its presence in the datacenter cloud management and security segments.

The company faces competition from Citrix Systems Inc. (CTXS - Free Report) and Microsoft Corp. (MSFT - Free Report) that is likely to act as a headwind going forward.

We have a Neutral recommendation on VMware over the long term (for the next 6 to 12 months). Currently, VMware has a Zacks #2 Rank, which implies a Buy rating on a short-term basis.

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