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Virtualization hyper-disruption has just begun

No, I'm watching my movie, so I ain't talking, m L-Inq mates are. Martin reports:

"The acquisition will also strengthen each company’s strong partnership with Microsoft and commitment to the Windows platform. As an independent company, XenSource has built a strategic relationship with Microsoft designed to ensure broad interoperability between XenSource products and the upcoming Microsoft Windows hypervisor, code named ‘Viridian’. This relationship complements and broadens the successful partnership between Citrix and Microsoft in the Windows application delivery, application networking and branch office infrastructure markets."

In a conference call with press, Citrix’s Wes Wasson even trumpeted the fact that it had managed to squeeze a quote out of Big Green, noting that this was "unusual".

This is the quote, from Microsoft VP Bob Muglia:

"Although the market is still in the earliest phase, virtualisation already offers significant opportunities for cost savings and innovation. Citrix and XenSource have long been strong partners for Microsoft and it is exciting to see them team up to help move the market forward."

Hmm. Citrix’s relationship with Microsoft has certainly been important to both for many years but, speaking to Citrix executives recently, they were very frank that this was not all back-slapping but more of a guarded mutual understanding.

As one of them told me, "With Microsoft, you sleep with one eye open."

There is also a bunch of other virtualisation firms including KVM, Virtual Iron and, most interesting of all, Swsoft, which is under the same management as desktop virtualisation firm Parallels. SWsoft’s loquacious chief Serguei Beloussov could be the joker in the pack here but any deal-making between giants and members of this group could change the virtualisation picture again.

Loquacious is he indeed!



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