Linked by Thom Holwerda on Mon 9th Jul 2007 22:00 UTC, submitted by _mikk
Intel "Intel and VMware announced today that Intel Capital is taking a USD 218.5 million stake in virtualization company VMWare. Intel will purchase 9.5 million Class A shares at USD 23 per share, which, at the completion of VMware's forthcoming IPO, will give Intel about a 2.5 percent stake in the company. Because VMware's stock is split between Class A shares, which have less voting power, and Class B shares, Intel won't control that many votes in the company, but they will get a board seat."
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Some scary stuff in this article!
by SReilly on Mon 9th Jul 2007 22:47 UTC
SReilly
Member since:
2006-12-28

Looks like MS is out to take over another 'partner's' market. From the article -

Microsoft will eventually rework their entire Windows product line, from consumer editions up to server editions, to include virtualization (and the management of virtualized resources) as a core operating system capability. When this happens, it's very likely that the only Windows-based virtualization solution that any Microsoft shop will consider is the default one that ships with Windows. At this point, VMware had better hope that XenSource hasn't caught up with them on Linux, because Linux will be the only place where VMware will have a prayer.

Although I can understand MS wanting to get on board the virtualisation gravy train, mainly due to the fact that you have several virtualisation technologies out of the box on any Linux distro (not to mention built into the kernel), trying to kill off a former 'partner' by offering a free, Enterprise level alternative integrated into it's consumer desktop offering just seems like more abuse of it's virtual monopoly.

Hopefully we can have several open source implementations to offset MS if they're offering turns out to be as bad as VirtualPC currently is. ;-P

Edit: Added some bits for clarity.

Edited 2007-07-09 22:50 UTC

Reply Score: 4

tux2005 Member since:
2007-04-03

The article seems to be forgetting VMware ESX, I don't think Microsoft will be able to compete for the same level that ESX provides for a while yet.

ESX runs VMware's own kernel and hypervisor so instead of having virtualization logic *added* to the kernel, the kernel is designed for virtualization, leading to better performance.

Microsoft may be able to convince some shops to switch to their own built in virtualization tool for some testing but I wouldn't expect them to start taking over the market. Also you have to consider what operating systems will be supported for running in the virtualized environment, if non-Windows guests couldn't perform well then that could be a show stopper for some.

Reply Parent Score: 4

ewright Member since:
2005-07-21

When it comes to virtualization, the money is not in the host runtime - both MS and VMWare give it away for free - but in the managability software that surrounds it (there are strategic aspects too). Microsoft makes the System Center product line, which has virtualization concepts built deep into it and correspondingly they offer a runtime.

Microsoft definitely desires that Windows be your virtualization host (for any and all workloads), and will build good guest-level support for alternative OSes to support that goal. Their arrangement with Xen speaks to that.

Edited 2007-07-09 23:24

Reply Parent Score: 2

FunkyELF Member since:
2006-07-26

Although I can understand MS wanting to get on board the virtualisation gravy train, mainly due to the fact that you have several virtualisation technologies out of the box on any Linux distro (not to mention built into the kernel), trying to kill off a former 'partner' by offering a free, Enterprise level alternative integrated into it's consumer desktop offering just seems like more abuse of it's virtual monopoly.

This time around it is going to be hard to cry monopoly like before with Internet Explorer being deeply integrated into the OS since Linux has virtualization right in it's kernel too.

Virtualization makes sense in the kernel, this is something that Microsoft should do.

Reply Parent Score: 1