Neither company is saying a thing yet, but word is Cisco Systems (NASDAQ: CSCO) and EMC (NYSE: EMC) are joining up to sell a new collection of products designed to deliver cloud computing capabilities, Reuters reports. Called vBlock, the cloud solution is intended to help the companies compete more effectively with IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ).

The partnership, which no one is admitting to, involves a joint venture between Cisco and EMC that will sell vBlock. The former will supply the networking equipment and servers, with the latter kicking in the storage gear and virtualization technology through its VMWare (NYSE: VMW) subsidiary. The joint venture will put the systems together, integrate the components for clients, and make the whole pile of cables and silicon work. A formal announcement is expected next week.

It goes without saying that I like business models that offer systems to increase efficiency and optimize performance, which is why I'm Reiterating my Buy rating for VMWare (NYSE: VMW), first recommended on June 5, 2009 at a price of $32.59. If you purchased VMW then, you're up about 20%.

VMWare's mission is to improve the efficiency and availability of resources and applications. Examples include running energy systems more efficiently, reducing capital costs, and improving desktop management and control.

Late Monday, VMware (NYSE: VMW) announced that it will acquire SpringSource, a privately held company. The deal carries a total value of $420 million, which will consist of $362 million in cash and equity along with $58 million in unvested stock and options. The deal is expected to close in the third quarter of the year.

The acquisition is believed to have been made in order to help VMW expand its management software in order to work with what is known as cloud computing services. Cloud computing is a service over the Internet where users have an external company run the applications.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Advanced Micro Devices Inc. (NYSE: AMD) narrowed its net loss in Q2 but not as much as expected.
• Apple Inc. (NASDAQ: AAPL) posted better-than-expected Q3 results on demand for iPhones and Macs.
• Intuitive Surgical Inc. (NASDAQ: ISRG) reported earnings and revenue that topped expectations.
• JDA Software Group Inc. (NASDAQ: JDAS) shares surged after it reported record results for Q2.
• Microsoft Corp. (NASDAQ: MSFT) lower Q4 results still topped earnings estimates, but shares fell.
• VMware Inc. (NYSE: VMW) unimpressive Q2 results still managed to beat analysts' low expectations.
• Yahoo! Inc. (NASDAQ: YHOO) Q2 profit was flat year over year and revenue and cash flow declined.

For the past decade, VMware (NYSE: VMW) has been one of the fastest-growing software companies in the world. Unfortunately, things have slowed down recently.

According to the Q2 numbers, the revenues came to $456 million, which showed no growth over the past year. The drag came from US market, where sales were down 3%.

VMware's earnings were $32.5 million, which compares to $52.3 million in the same period a year ago.

Without question, the modern -- and now postmodern -- era present an economy and a commercial environment that rewards efficiency and systems optimization. And that's good news for VMWare (NYSE: VMW).

VMWare's mission is to improve the efficiency and availability of resources and applications. Examples include running energy systems more efficiently, reducing capital costs, and improving desktop management and control.

Options and trading specialist Bernie Schaeffer selects stocks based on a combination of fundamental, technical and sentiment-based metrics.

His research leads to long trading positions for his Schaeffer's Master Portfolio and short trading plays for his Schaeffer's Short Selling services.

Here's a long at four of his latest trading ideas -- long positions in Netflix (NASDAQ: NFLX) and VMware (NYSE: VMW) as well as short position in Exxon Mobil (NYSE: XOM) and Apple (NASDAQ: AAPL).

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) Q1 profit blew away estimates, sending shares soaring.
• Apple Inc. (NASDAQ: AAPL) topped analysts expectations and offered conservative guidance.
• Boeing Co. (NYSE: BA) reported better-than-expected results but warned that if faced challenges.
• Coach Inc. (NYSE: COH) topped Q3 profit estimates and announced the start of quarterly dividends.
• Continental Airlines Inc. (NYSE: CAL) widened is net loss in Q1 but still beat low Wall Street estimates.

VMware (NYSE: VMW - option chain) stock is falling today after the company forecast second-quarter revenue to be flat or slightly down compared to last year's second-quarter revenue of $456.13 million. Analysts are expecting the company to post revenue of $499 million. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on VMW.

This morning, VMW opened at $27.17. So far today the stock has hit a low of $26.02 and a high of $27.57. As of 11:30, VMW is trading at $26.33, down $6.22 (-19.1%). The chart for VMW looks bullish and S&P does not currently have a STARS rating for VMW.

Tech stock VMware, Inc. (NYSE: VMW) is broadly higher today on the heels of an upbeat note from Goldman Sachs. VMW was added to the brokerage firm's Conviction Buy list, with Goldman noting an expected boost in sales. The firm also thinks that VMW is better-positioned than many of its competitors to ride out the economic recession.

In addition to the Conviction Buy nod, Goldman also hiked its price target on VMW to $29, representing a premium of 22.8% to the equity's Tuesday closing price. The stock could attract additional price-target increases during the short term, as Thomson Reuters pegs its average 12-month target from analysts as $23.31 -- a modest discount to yesterday's close.

Today looked like the traditional broke American spender of the past. Lower income, increased spending. We also saw waves of profit taking ahead of the weekend as the last two weeks have been some of the best moves seen in years in years. Here were today's unofficial closing levels:

Dow 7,776.18 -148.38 (-1.87%)
S&P 500 815.94 -16.92 (-2.03%)
Nasdaq 1,545.20 -41.80 (-2.63%)

Top Upgrades & Downgrades
52-Week Lows

This post was written by Minyanville contributor Sean Udall. Sean holds position in RIMM, VMW, SUPX.

• Goldman Sachs upgraded Research in Motion (NASDAQ:RIMM)saying to buy in front of EPS. I couldn't agree more and in fact was going to say that today. Be that as it may, I doubled my RIMM long into yesterday's weakness and plan to hold into/through EPS report. My quick take is that RIMM could have one of the better reports relative to all the negative analyst actions and commentary in tech and the overall market.
  
  
• One of my themes for this upcoming EPS season is to look for stocks that have had the most negative analyst commentary coming into the quarter, as no one these days is looking at things like Price/Sales, Price/Book or Price to normalized earnings.
  
  

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) earnings tumbled in Q4 but came in just short of expectations.
• Best Buy Inc. (NYSE: BBY) earnings prospects and cash flow led to an analyst's upgrade.
• Bristol-Myers Squibb Co. (NYSE: BMY) topped analysts Q4 expectations, sending shares higher.
• Colgate-Palmolive Co. (NYSE: CL) posted a better-than-expected Q4 profit despite the weak economy.
• Delta Air Lines Inc. (NYSE: DAL) reported a big quarterly loss due to merger costs and bad fuel hedges.
• Eaton Corp. (NYSE: ETN) Q4 earnings fell on lower exchange rates and charges related to an acquisition.
• E*Trade Financial Corp. (NASDAQ: ETFC) narrowed its Q4 net loss but fell short of expectations.

This post was written by Minyanville contributor Sean Udall.

Broadcom (NASDAQ: BRCM) reports tonight and it is getting hit due to the poor report from Qualcomm (NASDAQ: QCOM). QCOM lowered guidance quite a bit -- in fact, enough that I likely may not have to worry much about QCOM for the next couple quarters. Low $30's would present solid value.

Getting back to BRCM, I still feel it is one of the few must own chip names. I think it has enough innovation and diversification to avoid the 35-40% sequential reductions I am seeing from many in the chip space. However, I also think a lowering of the bar is priced into BRCM's shares and anything less than a disaster should keep the stock above $16.50 (assuming we avoid another shock down to the whole market). Anything around that level ($16.50) and lower would have me adding the shares. I've taken gains recently in trading shares and am hoping to add BRCM back on just a bit more weakness.

Over the years, VMware (NYSE: VMW) has posted a sterling growth record. Of course, the main driver is virtualization technology, which improves the productivity of servers and data centers.

And yes, based on VMware's fourth quarter report, the company had another nice showing. Revenues spiked 25% to $515 million (full-year revenue was $1.9 billion, up 42%). No doubt, for a company of VMware's size, this is enviable.

Moreover, VMware has a highly leveraged operating platform. That is, Q4 GAAP operating income came to $313 million, up 33% over the past year.

However, according to the conference call, VMware is certainly facing some headwinds. After all, the financial industry is a key customer base.