The gorilla problem
I speculated a few days ago that some single-trick companies could really suffer, if one of the big vendors make a serious attempt to enter a market, namingly for example NetApp with their filer products. Annother vastly successful company has maybe the same problem: What would happen with VMware when Intel and/or AMD would decide to integrate an hypervisor into the BIOS (in their next battle round) like Sun did it with with sun4v? VMware prospers on the nonexistance of such an integrated hypervisor in x86. No 500 pound gorilla in the market place. But what would be the residual value proposition of VMware when such integrated hypervisors are in place? Even software can be commoditized.