EMC said on Tuesday that its second quarter profits rose nearly 20 percent as the company recorded double-digit sales gains and posted its largest revenue gain in more than two years. EMC reported net income of $334.4 million for the three months ended June 30, which is up from a profit of $279 million in the same quarter of 2006. And revenue rose 21 percent to $3.12 billion from $2.57 billion a year ago. And on EMC said on Tuesday that its second quarter profits rose nearly 20 percent as the company recorded double-digit sales gains and posted its largest revenue gain in more than two years.EMC reported net income of $334.4 million for the three months ended June 30, which is up from a profit of $279 million in the same quarter of 2006. And revenue rose 21 percent to $3.12 billion from $2.57 billion a year ago. And once again, VMware was a huge contributor to the bottom line. The crowned prince of virtualization grew sales 89% year-over-year to $298 million during the second quarter as it continued to unlock the value of virtualization for existing and new customers around the world. During the quarter, the virtualization leader broadened its product portfolio with new releases of its award-winning virtual desktop software and continued to expand its network of technology and distribution partners. EMC plans to sell 10 percent of VMware in an IPO of stock this summer, and recently announced its plans to sell another 2.5 percent stake to Intel Corporation through its global investment arm, Intel Capital, for $218.5 million.EMC’s chairman, President and CEO told analysts that he is optimistic information technology spending will remain strong through the year’s end and drive further gains at EMC. He added that the company sees a positive environment in all major geographies. With the current earnings, the IPO and the investment from Intel, the question remains – what will VMware spend their money on to help retain their marketshare lead? Or the question could be re-phrased to ask, who will they spend their money on? SYS-CON had reported that VMware had planned on acquiring Opsware. If that were true, it looks like HP beat them to the punch. But with a sea of third-party applications leveraging the virtualization technology out there, VMware still has a chance to reel in a couple of really big fish. Software Development