Over the last two years, VMware, Inc. (VMW, Financial), a virtualization software vendor, has transitioned its business, preparing itself for the next phase of growth as its core market (server virtualization) matured. Shares rose on reports of strong fourth quarter results across management tools and end user results, as investors gained confidence in the company's ability to find new growth engines. We see VMware as a best-of-breed software company with a large customer base and multiple sales opportunities that should allow it to grow faster than the market.
From Baron Funds' first quarter 2014 commentary.
