• Reuters, Tuesday, January 22, 2008 11:30 AM

Microsoft is targeting virtualization software as a new area for growth. The software giant on Monday bought startup Calista Technologies and expanded its existing alliance with Citrix Systems, moves that put Microsoft in direct competition with market leader VMware. Citrix is developing a new software virtualization software tool for Microsoft's Windows Server 2008 that makes its new Hyper-V technology compatible with Citrix's server software, XenServer. Virtualization is considered one of the most significant developments in recent software history, as it physically separates the desktop from a computer, allowing a person to call up a virtualized version of his or her computer over a network connection, while using a different machine. The technology allows companies to save on hardware costs by allowing one machine to access several different desktops.

VMware is the undisputed leader of the virtualization pack, Since the IPO in August, the stock has nearly tripled. Analysts say the virtualization wars are only just beginning, as companies test different ways to use virtualization to improve anything from security software to microchips.

Read the whole story at Reuters »