VMWare are now owned by EMC, the storage company. They have been on a Cisco like buying spree because they don't have enough beds to squirrel their profits away under.
Mark Rand (50 TB of EMC storage in 3 racks in our pokey little computer room and it's all full!) RTFM
Like I said, they will survive if they don't overestimate their position of influence. Going out and buying up too much unrelated crap will be their undoing, not competition from free product from MicroSoft.
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