Will Microsoft Buy A Ticket To Virtualization Party?

from the are-they-on-the-guest-list? dept

Last week, just one day after VMWare's meteoric IPO, Citrix Systems announced the acquisition of Xensource, confirming that virtualization mania was in full swing. Of course, as when any area gets this hot, you have to figure that the IT majors will want in on the action. Wall Street analysts are now speculating that Microsoft may make a competing bid for Xensource or possibly acquire it through an acquisition of Citrix itself. Should that happen, IBM may feel the need to make a move of its own, although for now it's all rank speculation. Either way, we do know that Microsoft is definitely interested in the virtualization space. A New York Times article from earlier this year discussed the potential rivalry between it and VMWare, noting that it could attempt to beat it back by bundling the technology into a future version of Windows (sound familiar?). In the past, Microsoft has been conservative about dipping deeply into its cash horde to take on new markets. But as its recent purchase of Aquantive indicates, it will strike fast when it starts to feel threatened.

Filed Under: virtualization
Companies: citrix, ibm, microsoft, vmware, xensource


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  1. identicon
    Kevin, 20 Aug 2007 @ 4:44pm

    Huh?

    Of course, as when any area gets this hot, you have to figure that the IT majors will want in on the action. Wall Street analysts are now speculating that Microsoft may make a competing bid for Xensource or possibly acquire it through an acquisition of Citrix itself.

    That's because Wall Street analysts aren't the brightest bunnies in the forest. Microsoft already has desktop and entry-level server virtualization products (Virtual PC and Virtual Server) which were developed from core technology that Microsoft acquired when they bought Connectix back in 2002/2003. They've been working on a proper hypervisor-based solution for awhile now to compete with VMWare's enterprise-grade virtualization, and it is based on technology already licensed from Xensource. Citrix wouldn't bring anything to the table that would interest Microsoft, becuase Microsoft already has Softgrid, a virtualization-based application deployment and management solution that is about to go head to head with Citrix. Assuming that they DID want to buy Citrix, there would definitely be anti-trust implications. Sometimes I find it hard to believe that "Wall Street analysts" get paid so much money to make up rumors.

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