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Microsoft moves in further on VMware-dominated niche

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Associated Press / January 22, 2008

SEATTLE - Microsoft Corp. disclosed several moves yesterday it says will help business customers take advantage of a technology called virtualization, and in the process help the software maker catch up with VMware Inc., the frontrunner in that area.

Virtualization allows one physical computer to house multiple "virtual machines," each one acting like a separate computer with an operating system and all the software that runs on top of it.

For office workers, virtualization might mean that "their computer" is actually a virtual machine running on a server - not the actual hardware on their desks - and can be accessed from any work station. That, in turn, could make it easier for IT workers to install applications across an entire company network or back up an individual's computer with all its settings, thus making losing a laptop much less disastrous. And, older hardware that would have been replaced can have a longer life connecting to virtual desktops housed on more powerful servers.

To help move the virtual desktop scenario forward, Microsoft said it plans to acquire Calista Technologies Inc., a San Jose, Calif., start-up, whose technology makes logging on to a virtual desktop feel more like working on a physical Windows computer, Microsoft said. No financial details were disclosed.

Microsoft also said it will expand an alliance with another virtual desktop computing company, Citrix Systems Inc., that will help their respective products work well together.

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