Microsoft Moves on Virtualization

Microsoft (MSFT) has acquired Calista Technologies and expanded its alliance with Citrix Systems (CTXS) as part of a broader virtualization strategy it will outline Tuesday. Calista specializes in virtual desktop software, while Citrix acquired XenSource last year. These moves, along with adjustments to Microsoft's virtualization licensing for Windows Vista, are designed to position Microsoft to compete more aggressively with VMware in the enterprise virtualization market.

Microsoft will formally unveil its virtualization strategy tomorrow at a Virtualization Deployment Summit in Bellevue, Washington. Dan Farber at ZDNet has a thorough advance of the news, however, including commentary from Microsoft and VMware and the text of a memo to some Microsoft customers outlining the company's approach to "Dynamic IT" using virtualization.