VMware adding staff, steady on outlook

SAN FRANCISCO (Reuters) - VMware Inc (VMW.N) is looking to increase its workforce by as much as a quarter this year as it sees a burst in spending on its virtualization products, its Chief Operating Officer said on Wednesday.

The Palo Alto, California-based company, whose technology lets companies boost the efficiency of computer servers, saving money on hardware and maintenance, said economic problems in Europe had not yet put a dent in business, or forced any change in its second-quarter financial outlook.

"It's better than it was last year," Tod Nielsen, VMware's COO told the Reuters Global Technology Summit in San Francisco, asked about customer commitments. "Folks are realizing they've got some spending to do."

The top maker of virtualization software, majority owned by EMC Corp (EMC.N), didn't disclose any big merger plans, but said the time was ripe for deals.

"It's a good time to be a buyer in this market," said Nielsen. "We are looking at whatever technology or solutions help accelerate our vision."

(Reporting by Bill Rigby)