VMware files for a public stock offering

EMC Corp.’s fast-growing VMware software unit today filed for an initial public offering, which analysts said could be one of the hottest IPOs since Google’s.

Documents filed with the Securities and Exchange Commission said the IPO would raise up to $100 million. EMC acquired VMware in January 2004 and earlier this year announced an intention to sell a 10 percent stake.

VMware’s software allows companies to boost the efficiency of data centers by tapping processing power that would otherwise go unused, allowing one computer to perform work typically done by multiple machines.

Such ‘‘virtualization’’ programs allow businesses to save money on computer servers, electricity, real estate, maintenance, and other costs.

Analysts said VMware is one of the fastest-growing software companies and that its products have a one- to two-year lead over other types of virtualization software. Competitors include Microsoft Corp., privately held XenSource Inc., Novell Inc., and Red Hat Inc.

‘‘The benefit from increased server utilization is such a compelling return on investment,’’ said Morgan Keegan analyst Brian Freed. ‘‘It’s really paradigm-changing technology.’’

Citigroup, JPMorgan, and Lehman Brothers are lead underwriters for the IPO.

EMC, a Hopkinton data storage company, will own 32.5 million shares of Class A stock and 300 million shares of Class B stock after the IPO.

The SEC filing did not give the number of shares that will be sold or the expected price.
(Reuters)