The Top Three Cloud Stocks from Gartner’s Magic Quadrant: Amazon.com, Inc. (AMZN), VMware, Inc. (VMW)

3. VMware, Inc. (NYSE:VMW)

VMware, Inc. (NYSE:VMW) is another company that offers its public cloud services via Bluelock. Bluelock is part of VMware’s vCloud Data Center Service, meaning it leverages VMware tools to power its offering. It was one of the first to roll out new VMware features, and its product roadmap is aligned with that of VMware’s, Gartner says. It has a “Portfolio” service, which provides monitoring of IaaS resources and advises customers on how to optimize workloads.

VMware, Inc. (NYSE:VMW) recently unveiled the VMware Horizon Suite, a comprehensive enterprise cloud platform that will connect end users to their data, applications, and desktops on any device without sacrificing IT security and control.

VMware, Inc. (NYSE:VMW) has been identified as one of 2013’s 50 Disruptive Companies, MIT Technology Review ‘s annual list of the world’s most innovative technology companies. The honorees are nominated by MIT Technology Review’s editors, who look for companies that have demonstrated original and valuable technology over the last year, are bringing that technology to market at significant scale, and are clearly influencing their competitors.

I’ve watched VMware, Inc. (NYSE:VMW) closely for the past three years with the large continual share purchases by EMC. The company reported stronger than expected revenue and earnings when it released 4th quarter numbers in February. Total revenue of $1.29 billion just beat consensus of $1.28 billion, and EPS of $0.81 was solidly ahead of the street estimate of $0.78. The stock is expected to trade sideways from its current price for the next few months until it starts gaining traction in the second half of the year. Long-term investors should accumulate shares of the stock in this consolidation.

The article The Top Three Cloud Stocks from Gartner’s Magic Quadrant originally appeared on Fool.com and is written by Anindya Batabyal.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.