VMware last night released Q2 2008 earnings report in which it reduced its outlook for the third quarter, investors responded by shedding shares and caused a drop of 14% in share price.

BOSTON (Reuters)—Business software maker VMware Inc issued a revenue outlook on Tuesday that fell far short of expectations, saying customers were delaying purchases or opting for smaller and shorter contracts due to a weak economy.
“In a word: disappointing,” said Jefferies & Co analyst Katherine Egbert. “They might be trying to lower the bar for the new CEO.”
VMware replaced Chief …

VMware released a new Desktop Virtualization package with the aim of helping IT departments roll out virtual desktops to their employees. The new solution is to “deliver a complete desktop experience that is easy to manage, fast to deploy, less costly to maintain, always-current and radically more secure.” the San Alto based virtualization provider claims.
Desktop Virtualization involves a single powerful server hosting multiple instances of a standard operating system eg. Windows allowing people to work remotely with greater ease and security while also reducing IT costs.

A recent article by Bloomberg indicates that EMC may be considering selling their stake in Virtualization solutions provider VMware.
Sources at virtualization.info state that Intel may be interested in an acquisition, however its not likely to happen before Jan 09 in order to complete a tax free distribution of the shares.
The move would allow VMware to place the hypervisor directly onto the CPU leading to all kinds of new possibilities within the market.
Intel and Vmware have teamed up in the past on various collaborations and Intel already own a small 2.5 …