CLSA analyst Louis Misciosia downgraded VMware to Underperform and lowered its price target to $56 from $62 saying the company faces a number of headwinds. Many solutions using Hyper Converged, including Nutanix, work to eliminate the VMware vSphere license and management tools by using open-sourced solutions, or their own product. For similar reasons, users moving to the cloud generally end their support agreements. Also, the analyst has heard Vmware is running into market-share saturation and lack of growth on the server side. Misciosia is not expected licensing growth year-over-year, versus modest growth previously, and lowered estimates.