J.P. Morgan Announces Changes For VMW

J.P. Morgan is maintaining its Neutral rating and its $80 price target on Vmware VMW following the company's announcement of its new cloud upgrade. In the report, J.P. Morgan writes, “VMware announced the launch of vSphere 5 as well as the new ‘Cloud Infrastructure Suite' – the company's first integrated cloud infrastructure offering intended to take full advantage of operating in a fully virtualized environment. The company also introduced a pay-for-consumption pricing model, replacing the previous model based on customers' hardware configurations. Both new offerings are expected to be available in 3Q11.” VMW closed yesterday at $100.40.