Will Microsoft Buy A Ticket To Virtualization Party?
from the are-they-on-the-guest-list? dept
Last week, just one day after VMWare's meteoric IPO, Citrix Systems announced the acquisition of Xensource, confirming that virtualization mania was in full swing. Of course, as when any area gets this hot, you have to figure that the IT majors will want in on the action. Wall Street analysts are now speculating that Microsoft may make a competing bid for Xensource or possibly acquire it through an acquisition of Citrix itself. Should that happen, IBM may feel the need to make a move of its own, although for now it's all rank speculation. Either way, we do know that Microsoft is definitely interested in the virtualization space. A New York Times article from earlier this year discussed the potential rivalry between it and VMWare, noting that it could attempt to beat it back by bundling the technology into a future version of Windows (sound familiar?). In the past, Microsoft has been conservative about dipping deeply into its cash horde to take on new markets. But as its recent purchase of Aquantive indicates, it will strike fast when it starts to feel threatened.
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Filed Under: virtualization
Companies: citrix, ibm, microsoft, vmware, xensource
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Huh?
That's because Wall Street analysts aren't the brightest bunnies in the forest. Microsoft already has desktop and entry-level server virtualization products (Virtual PC and Virtual Server) which were developed from core technology that Microsoft acquired when they bought Connectix back in 2002/2003. They've been working on a proper hypervisor-based solution for awhile now to compete with VMWare's enterprise-grade virtualization, and it is based on technology already licensed from Xensource. Citrix wouldn't bring anything to the table that would interest Microsoft, becuase Microsoft already has Softgrid, a virtualization-based application deployment and management solution that is about to go head to head with Citrix. Assuming that they DID want to buy Citrix, there would definitely be anti-trust implications. Sometimes I find it hard to believe that "Wall Street analysts" get paid so much money to make up rumors.
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Re: Huh?
Kevin, that's exactly what they are paid to do. Rumors lead to trades - trades generate commissions - profits for the brokers. Do you think they have any other motive?
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as a follow to your thread, if the guys who write for techdirt, really knew/know tech, instead of just the surface crap, then they would have had the ability to do a quick bit of research and realize that msoft is already looking at this area, and has been for awhile...
peace..
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Re:
Always nice to hear from you, though I find that I repeatedly need to correct you.
do a quick bit of research and realize that msoft is already looking at this area, and has been for awhile...
Joe says that in his post. So, that was already made clear. Doesn't change the fact that they might make a competing bid for Xensource.
I'm trying to figure out what you think is wrong about Joe's post. He notes that analysts are suggesting that Microsoft might buy Xensource, and then notes that the company has been active in the space and is already a rival to VMWare.
So, I'm having a hard time with you saying that we don't know that "msoft is already looking at this area, and has been for awhile..." It says so right in the post.
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Right hand vs. Left Hand
If they see a need for xensource, it is only because they have crippled their own product. And xensource will then suffer the same fate if marketing has anything to say about it.
OTOH, I think this is WS attempt at driving up business in anticipation of the 'higher MS bid'
The only logical reason that I see MS buying is to take it off the market, which would be a pity.
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