(Adds shares, background, previous dateline NEW YORK)
BOSTON, Nov 13 (Reuters) - VMware Inc (VMW.N) released on Tuesday an early version of a free product it uses to promote its more advanced virtualization software and its shares rose over 11 percent, rebounding from a drop on Monday.
VMware shares fell 8.4 percent Monday on news from Oracle Corp ORCL.O that it was entering the virtualization market with a product three times more efficient than competitors’ offerings.
VMware, 86 percent-owned by EMC Corp EMC.N, is the market leader in virtualization software, which allows companies to save costs by squeezing more resources out of each computer.
It has provided companies with a free product known as VMWare Server to give them a chance to experiment with the technology. That approach has proven successful, prompting thousands of businesses to buy complex VMware products that they use to run sophisticated data centers.
On Tuesday VMware announced the second generation of VMware Server and made a trial copy available on its Web site.
VMware said it will be generally available next year and has a new Web-based interface that supports more than 30 operating systems including Microsoft Corp’s (MSFT.O) Windows Vista, Windows Server 2008 and various Linux products.
Shares of VMware rose $9.12, or 11.4 percent, to $89.48 on the New York Stock Exchange in late Tuesday morning trade and have tripled from their initial public offering price of $29 a share in August.
EMC shares, which had fallen 5.4 percent on Monday, were up 4.1 percent at $19.60 amid a broad rebound in technology stocks. (Reporting by Jim Finkle, editing by Tim Dobbyn)