Two fuzzy versions of the k-means optimal, least squared error partitioning problem are formulated for finite subsets X of a general inner product space. In both cases, the extremizing solutions are shown to be fixed points of a certain operator T on the class of fuzzy, k-partitions of X, and simple iteration of T provides an algorithm which has the descent property relative to the least squared error criterion function. In the first case, the range of T consists largely of ordinary (i.e. non-fuzzy) partitions of X and the associated iteration scheme is essentially the well known ISODATA process of Ball and Hall. However, in the second case, the range of T consists mainly of fuzzy partitions and the associated algorithm is new; when X consists of k compact well separated (CWS) clusters, Xi, this algorithm generates a limiting partition with membership functions which closely approximate the characteristic functions of the clusters Xi. However, when X is not the union of k CWS clusters, the limiting partition is truly fuzzy in the sense that the values of its component membership functions differ substantially from 0 or 1 over certain regions of X. Thus, unlike ISODATA, the “fuzzy” algorithm signals the presence or absence of CWS clusters in X. Furthermore, the fuzzy algorithm seems significantly less prone to the “cluster-splitting” tendency of ISODATA and may also be less easily diverted to uninteresting locally optimal partitions. Finally, for data sets X consisting of dense CWS clusters embedded in a diffuse background of strays, the structure of X is accurately reflected in the limiting partition generated by the fuzzy algorithm. Mathematical arguments and numerical results are offered in support of the foregoing assertions.