Companies’ rising use of new container cloud technology could lower the demand for VMware’s software, according to Goldman Saches.
Software analyst Heather Bellini lowered her rating for VMware stock (ticker: VMW) to Sell from Neutral, also citing the shares’ elevated valuation.
Containers are more efficient and require less storage space versus the virtualized servers that VMware provides, Bellini notes. Server virtualization allows companies to run multiple instances of workloads — including applications and operating systems — on one server computer, saving hardware costs.
