VMware 2009 Annual Report Download - page 14

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Table of Contents
Employees
As of December 31, 2009, we had approximately 7,100 employees in offices worldwide, including employees contracted through EMC as
discussed below. None of our employees are represented by labor unions, and we consider current employee relations to be good.
We contract with EMC to utilize personnel who are dedicated to work for VMware on a full-time basis. These individuals are located in
countries in which we do not currently have an operating subsidiary and are predominantly dedicated to our marketing efforts. We use
contractors from time to time for temporary assignments and in locations in which we do not currently have operating subsidiaries. In the event
that these contractor resources were not available, we do not believe that this would have a material adverse effect on our operations.
Available Information
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed
pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are made available free of
charge on or through our website at www.vmware.com as soon as reasonably practicable after such reports are filed with, or furnished to, the
Securities and Exchange Commission (the “SEC”). Copies of the (i) charters for our Audit Committee, Compensation and Corporate
Governance Committee, and Mergers and Acquisitions Committee, (ii) our Business Conduct Guidelines (code of business conduct and ethics),
and (iii) our Corporate Governance Guidelines are available on the Investor Relations page of our website at www.vmware.com. None of the
information posted on or accessible through our website is incorporated by reference into this Annual Report.
The risk factors that appear below could materially affect our business, financial condition and results of operations. The risks and
uncertainties described below are not the only risks and uncertainties facing us. Our business is also subject to general risks and uncertainties that
affect many other companies.
Risks Related to Our Business
The virtualization products and services we sell are based on a technology with emerging applications and therefore the potential market for
our products remains uncertain.
The virtualization products and services we develop and sell are based on a technology platform with established applications in
virtualizing on-premises data centers and emerging applications for desktop interface and as a platform for cloud computing. Our success
depends on organizations and customers perceiving technological and operational benefits and cost savings associated with the increasing
adoption of virtual infrastructure solutions for on-premises data centers as well as for desktop interface and cloud computing. Although the use
of virtualization technologies on servers and in on-premises data centers has gained acceptance on computer servers for enterprise-level
applications, the extent of adoption of virtualization for desktop interface as a platform for cloud computing and by small and medium-size
businesses remains uncertain. As the markets for our products mature and the scale of our business increases, the rate of growth in our product
sales will likely be lower than those we have experienced in earlier periods. In addition, to the extent that rates of adoption of virtualization
infrastructure solutions occur more slowly or less comprehensively than we expect, our revenue growth rates may slow materially or our revenue
may decline substantially.
We expect to face increasing competition that could result in a loss of customers, reduced revenues or decreased operating margins.
The market for our products is competitive and we expect competition to significantly intensify in the future. For example, Microsoft
provides products that compete with some of our offerings, has released virtual infrastructure and virtual management products, and recently
added higher-end features to those products. Microsoft has also announced a cloud-based computing initiative. Microsoft’s offerings are
positioned to
11
ITEM 1A.
RISK FACTORS