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SEATTLE - Microsoft has bought a start-up company called Calista Technologies and expanded its alliance with Citrix Systems, targeting the fast growing virtualisation market.
Microsoft's moves are part of a broader call to arms against the early leader VMware in the market for technology that allows a single computer to act like many "virtual" machines, thus expanding its capacity to run various types of software and multiple operating systems.
"This is Microsoft coming out and staking the claim that they are serious about virtualisation," said Forrester Research analyst Natalie Lambert. "When you think of VMware, you think virtualisation. That is going to be a hurdle for Microsoft."
Virtualisation is one of the most important developments in the software industry, because it disrupts the traditional business model that marries one machine to one piece of software, such as an operating system.
The technology allows companies to save on hardware costs by running existing equipment more efficiently, while allowing companies to deploy applications faster without worrying that certain pieces of software will clash with one another.
Microsoft, the world's largest software maker, acquired Calista for an undisclosed sum. Calista designs technology that helps compress and deliver "virtualised" desktops running on a remote computer server.
Citrix is developing a software tool that helps Microsoft's new Windows Server 2008, which will incorporate virtualisation technology known as Hyper-V, to be compatible with Citrix's XenServer product, an open-source competitor to Windows.
Microsoft leads a pack of entrenched software makers, including Oracle and Sun Microsystems, looking to close the gap on VMware, the first company to commercialise server virtualisation technology.
Shares of VMware, which is majority-owned by data storage firm EMC, have nearly tripled since its initial public offering in August, but the stock is off nearly 35 per cent from its late-October highs due in part to concerns about increasing competition.
Microsoft plans to release Windows Server 2008 in February. Six months after that release, Microsoft plans to introduce Hyper-V, the company's answer to VMware's main server product.
The company has reported multiple delays in completing the virtualisation component of Windows Server 2008.
- REUTERS
