Virtual Insanity aka VMware IPO

[qi:006] In a headline worthy of the New York post, The Register screamed, VMware’s IPO – Insanity turns Silicon Valley back to normal. It aptly sums up the VMware (VMW) IPO situation: the virtualization company is valued at close to $20 billion at the end of first trading day, while the company which owns 87% of VMware, EMC Corp., (EMC) has a market cap of $38 billion. Go figure!

Nevertheless, attention comes with a price. Mike MacCana, who writes the Venture Cake blog believes that VMware is a house of cards and has doubts about the proprietary nature of VMware ESX. Others disagree with his article, but it is surely worth reading, as are the comments about this issue on the Slashdot and the Google Finance Forums.