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Kernel-based virtual machine (KVM) is a Linux kernel infrastructure that supports virtualization. It offers full virtualization using Intel VT or AMD-V hardware assist and limited support for paravirtualization for Linux guests and Windows.
Xen is also supported in the kernel. In July, Linus Torvalds merged the XenSource patches into upstream for release as part of the 2.6.23 kernel, XenSource’s blog reported.
Xen has a big lead over KVM to date. Xen is integrated into the two leading Linux distributions and the commercial spinoff the Xen open source project, XenSource, recently signed its 500th ccmmercial customer. The Palo Alto, Calif, company is preparing to launch a major upgrade of its platform, XenEnterprise 4.0, in late August that offers advanced management features as well as storage and server virtualization features based on its partnership with Symantec.Heavy duty Linux user Amazon.com is a big backer of Xen but the collective power of the Linux Foundation and others who back open source virtualization will not allow an API war like those seen in the proprietary software industry, said Dr. Werners Vogels, vice president of worldwide architecture and CTO of Amazon.com told ZDNet at a LinuxWorld party.
WEll Xen was embracing the Novell and Microsoft. Little guy, you'd say, got no choices. Anyways this article talks about how KVM will be coming up with a product by September.