Microsoft and VMWare go one more round

In the battle for the virtualization title, VMWare, the underdog scrapper from Palo Alto, Calif. is pitted against the mammoth-sized contender out of Redmond that is Microsoft. I say contender because, although Microsoft has managed to pummel just about everyone else that’s stepped into the ring, VMWare has a solid position in virtualization. Now Microsoft has added a new maneuver to its repertoire in an effort to strengthen its offensive: the Calista/Citrix combo. I’ll talk about that in a moment, but first let me introduce myself.

My name is J. Peter Bruzzese (MCSE, MCT, MCITP: Messaging, A+, Network+, iNET+, CNA, CCNA and more) and InfoWorld’s new Enterprise Windows blogger. I’ve worked in IT management and training for the largest investment banking corporations in the world, as well as companies like New Horizons, CommVault Systems and, yes, even Microsoft (but that doesn’t mean I cannot be objective). Since the days of NT 4.0 I’ve been writing books about enterprise networks, storage solutions, and all things Microsoft, and they’ve sold worldwide in various languages. Lately my world has revolved solely around the seven new Office 2007 Servers (PerformancePoint, Forms, Groove, and so forth) and Exchange 2007. However, with Server 2008 on the horizon, it looks like a new game is beginning — and virtualization is at the heart of it.

Microsoft announced on Monday that it was acquiring Calista Technologies in an effort to improve upon its virtualization software, making it more competitive against long-time frontrunner VMWare. Calista software will assist in that, according to Microsoft, it “improves the user experience of … virtualized desktop deployments and server-hosted virtualized desktops or applications using Windows Server Terminal Services.”

“The addition of Calista technology to Microsoft’s virtualization portfolio … will enable remote workers to receive a full-fidelity Windows desktop experience without the need for high-end desktop hardware,” Microsoft goes on to say.

In addition, Microsoft and Citrix continue their symbiotic relationship in the virtualization world and have announced plans to go forward with desktop and server virtualization solutions that work off of Windows Server 2008. Citrix will be promoting its XenDesktop solution, while Microsoft focuses on its Hyper-V, hypervisor-based virtualization software — but both sides have agreed to extend support for the other.

Citrix is one of those interesting success stories. Microsoft has wanted to out-develop Citrix for years now — and shove the company overboard, so to speak. But Citrix always stays one step ahead and that’s held Microsoft at bay — for now. Citrix knows not to turn its back for a second, though, as it smiles for the cameras and say things like, “We’ve built a tremendous partnership with Microsoft… . Our shared vision with Microsoft … . Blah, blah, blah,” all the while keeping its back to the wall and sliding away from the Microsoft table, watching the exits.

Meanwhile, Microsoft has to continue its friendship with Citrix. I’m hearing something from the Godfather along the lines of, “Keep your friends close, and your enemies closer.”

It’s a great move by Microsoft, this one-two Calista/Citrix combo, and it has to have VMWare feeling the hit. What’s Microsoft’s goal in all of this? Why, world domination, of course. The boys at Redmond plan out their moves with a Risk board in hopes of achieving that very goal. Is Microsoft spreading itself too thin? It doesn’t seem to be so. The company has the money to buy what it needs — or who it needs, e.g. Calista Technologies. It has other products to keep it afloat. So, Microsoft can churn out one shoddy attempt after another at virtualization until it either gets good enough to stand critique, or simply becomes so widely used that we simply conform, forgetting the good old days of VMWare.

So, is this the end of VMWare? Not yet. Remember, VMWare still has EMC in its corner and that is a big friend to have. But where VMWare surpasses Microsoft in quality (although that divide will probably shrink this year), its offerings are more expensive. After all, VMWare’s sole purpose is virtualization, so its prices are high. Meanwhile, Microsoft can develop its virtualization counterpunch to within almost-as-good range, and give it away for free — or nearly so.

Free. That’s a powerful word in the world of enterprise virtualization. “Yankee Group analyst Laura DiDio said in an interview with the Associated Press that “a comparable Microsoft offering could cost as little as one-third of what VMWare charges.”

This should prove to be an exciting year for virtualization. And while I’m leaning toward Microsoft as the overall winner, I am (not-so) secretly rooting for the underdog. Go VMWare. In the words of Rocky Balboa, “It ain’t about how hard you hit. It’s about how hard you can get hit, how much you can take and keep moving forward. That’s how winning is done!”