With so much computing hardware in use around the globe, it is only prudent to use all that hardware in the most efficient way possible, after all, the gear is not free and it all requires space and maintenance, also not free. One way to increase hardware efficiency is to use Virtual Machine (VM) technology, and in a nutshell VM is a way to run a virtual computer within an actual computer.
Virtual Machine(s) are typically files, often called images, that run separately from everything else on the computer. The VM’s can have their own operating system, can be used for beta testing new applications, can be used to inspect and test infected code, and any other operation that benefits from being on its own. VM’s can be “sandboxed” in the host computer, meaning that they cannot interact in any way with any other part of the computer, so there is no code / instruction that can escape to, or tamper with, the host hardware.
It is possible to run several VM’s inside the same computer as long as the hardware is robust enough. For servers, VM’s can run multiple operating systems side-by-side typically using “hypervisor” software to manage them. Desktop computers would typically use the host operating system to run the VM operating system in a program window. Each VM provides its own “virtual” hardware, such as CPU, memory, hard drives, network interfaces etc, and the virtual devices are mapped to the real hardware when it is safe and/or advantageous to do so.
VM’s can provide a safe environment for testing and development, trying things out that could be dangerous on an actual, non-sandboxed computer. A good way to perceive development on a VM is “what happens in the sandbox can be kept in the sandbox”. But there are more uses for VM that have significant benefits in the production environments of many businesses. Not everything in a VM has to be confined to the VM if pathways to business operations are developed and implemented carefully.
An example of using VM technology to achieve higher efficiency in computer operations is to dedicate VM’s to specific business operations, such as EMAIL, WEBSITE, and ACCOUNTING. If each of these business functions normally has a dedicated server, there may be unused capacity in each server dedicated to each function. Using VM technology, each of these business functions can be given its own protected space in the available servers, and by dynamically adjusting that space, computing resources can be more efficiently utilized. A certain amount of “intelligence” is built into the VM and host environments to ensure the most efficient deployment of all computing resources.
With VM technology, companies may be able to significantly reduce costs, by having fewer servers and/or desktop machines to get all the work done.
There are several companies making great progress in VM technology, and this market space is poised to experience large growth within the next 12-24 months. We just sent our Trend Disruptors Premium subscribers a new recommendation in the VM space and are offering that recommendation to Money Talks subscribers (see below).
The Trend Disruptors team is currently monitoring another 20+ stocks for potential inclusion in the TD Premium portfolio. The performance of the Trend Disruptors Premium portfolio has been excellent, averaging a 28% gain on all closed positions.
New Recommendation: VMWare Inc (VMW.NYSE)
VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally. It offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions. It also provides networking and security products and services that enable customers to connect and operate their network; and storage and availability products, including data storage and protection options. In addition, it offers VMware Cloud Foundation, a platform that combines its compute, storage, and networking technologies with cloud management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; computing solutions, such as Workspace ONE that delivers and manages any application on any device by integrating access control, application management, and multi-platform endpoint management; pivotal cloud foundry, pivotal labs, and heptio, as well as pivotal application and pivotal container services; and VMware Carbon Black Cloud platform, AppDefense, and VMware Workspace ONE platform. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has strategic alliances with Amazon Web Services to build and deliver an integrated hybrid solution; and SNC-Lavalin to provide digital collaboration platform for project delivery. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc.
The stock of VMWare has been stagnant since December 2018 and the main reason for that stagnation is that Dell Technologies owns over 80% of the company. But come September, we expect Dell to sell its share of VMWare and we want to own shares now because, once the spin-off is announced, we expect the value in VMware to finally be unlocked.
Wall Street projects VMware will grow sales by 8–10% over the next four years. And it has above average gross margins of about 82%. We believe VMWare will surpass Wall Street’s sales and free cash flow estimates.
ACTION: BUY Stop for VMWare (VMW.NYSE) at 145.20 meaning only buy VMW if it trades at 145.20 or higher. If BUY Stop triggered, initial SELL Stop at 131.50.00. Buy up to 152.00
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