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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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.

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