Why VMWare Is Strong Today (VMW)

Shares of VMWare VMW are strong today in a weak tape, gaining more than 2% on news the company has launched an open source cloud initiative, which if proven successful, could be a huge blow to its competitors, such as Rackspace RAX, and Microsoft MSFT. The new package is called Cloud Foundry, and will allow developers the tools to build out applications on public clouds, private clouds and anyplace else, whether the underlying server runs VMware or not. Cloud Foundry is supposed to make it easier for developers to deploy and run applications anywhere in the world. It will allow you to write a few lines of code, and then Cloud Foundry will do the rest for you. The platform supports Java, Sinatra, Rails, and node.js. At last check, shares of VMW were up $1.75 to $84.65, a gain of 2.1% on 1.9 million shares.