ChChChChanges – Product launches, acquisitions, partnerships, and pricing Print E-mail
By Barb Goldworm

published: Friday, February 22 2008

2008 is off to a quick start in virtualization, with product launches, acquisitions, expanding partnerships and pricing changes. Here are a few of the interesting happenings thus far to check out and keep an eye on in 2008.

Microsoft Products, Partnership and Pricing  

As Microsoft moves into high gear for its official February launch of Windows Server 2008, the virtualization team is also gearing up for Hyper-V and its overall virtualization strategy.  In addition to an early positive response to the beta release of Hyper-V itself, a few interesting tidbits have been added to the strategy.  Given Microsoft's strength in desktops and applications, it's not surprising that their virtualization strategy expands beyond server virtualization to include desktop and application virtualization as key components, along with management in these areas.  As part of this strategy, there have been a number of product, partnership and pricing changes:

  1. Systems Center Virtual Machine Manager (VMM), the tool currently shipping to manage Virtual Server, will not only manage Hyper-V, but will also add support to manage other hypervisors, VMware initially, and XenServer after that.  VMM integrates well with other SystemsCenter tools already in wide use- Configuration Manager (previously SMS) and Operations Manager (previously MOM).  In addition, Systems Center will continue to expand management capabilities in Application Virtualization (previously SoftGrid) and Terminal Services. Systems Center will become a key area for Microsoft in virtualization, offering an integrated management platform that crosses physical and virtual, as well as OS, application and presentation virtualization.
  2. Building on its long-standing partnerships with both Citrix and its Xen business unit, and its already discussed interoperability between Hyper-V and XenServer, Microsoft announced that it will leverage Citrix's XenDesktop offering for delivery of a virtual desktop architecture (VDA). This approach will allow users connecting from a thin client or rich client to connect to virtual desktop VMs running XP or Vista running on a back-end Hyper-V infrastructure, connecting through the XenDesktop broker/manager.
  3. As part of encouraging the market to make the shift to a more complete virtual infrastructure (as well as to Vista), Microsoft's Windows pricing for virtual desktops is being reduced through Vista Enterprise Centralized Desktop (VECD).  This licensing option, available through Microsoft's Enterprise Agreement with Software Assurance, reduces the price per virtual desktop to roughly $23 per desktop, for any user connecting from a PC (presuming it is running some version of Windows) or $110 for users connecting from a thin client. (While the licensing is known as Vista Enterprise Centralized Desktop, it also allows downgrades to connect to XP or other desktops).

VMware Product Release and Thinstall Acquisition

VMware is also taking strides both in and beyond server virtualization.  With its acquisition of Thinstall, VMware moves into the area of application virtualization. Thinstall's technology has been around for several years, offering an encapsulated virtual application environment in the form of a single executable file.  The individual executable includes a small virtual wrapper, and can be easily moved around the network, and then executed on a client, creating its own virtual application sandbox.  Integration and expansion of this technology within the VMware product line will be an area to watch.

Back on the server virtualization front, VMware is delivering on its VI3.5 promise, with a number of new capabilities. Several enhancements focus on converting to virtual, such as Guided Consolidation and VMware Converter integration. New management capabilities include Storage VMotion (which allows migration of VM storage, similar to what VMotion does for VMs) and Update Manager (which automates patch management for ESX hosts and certain other VMs). VMware HA has also been expanded to include experimental support for monitoring individual VM failures to allow auto restart upon VM failure. A number of storage and networking related enhancements are included in VI3.5 and Virtual Center 2.5, such as VMotion support for local swap files, VM support for SATA devices, 10 GigE support, and NPIV support for Fibre Channel SANs (to allow individual VMs to have their own World Wide Port Name). 

Citrix Product Positioning and Partnership

As the Xen acquisition becomes part of the Citrix culture, virtualization technology is melding into and across the Citrix product line and nomenclature.   Citrix Presentation Server, the flagship Citrix product for many years, is now renamed XenApp, with the first hints of where and how Xen will evolve across Citrix.  Citrix now has new optimizations for XenApp/Presentation Server running in a VM, which will offer significant performance improvements for those environments where Virtualizing it makes sense.

The newly named Citrix Delivery Center will offer a unified family of products including XenServer, XenDesktop, XenApp, and NetScaler.  In addition, XenServer Platinum and XenDesktop include the Citrix Provisioning Server capability (from the Ardence acquisition) which provides OS streaming functionality for streaming the OS to virtual or physical desktops.  Tying the components together will be a new product called Citrix Workflow Studio, designed to help task workflow by orchestrating communications across multiple Citrix products.

Sun VirtualBox Acquisition

In the hypervisor arena, Sun late last year announced that they would offer their own Xen-based hypervisor, called xVM. In February, in a different segment of the virtualization market, Sun has just announced they they would acquire Innotek, maker of VirtualBox open source virtualization software targeted for developers. VirtualBox competes with products such as VMware's Fusion and Parallels Desktop, allowing developers to run multiple Operating Systems on their desktop to aid in software development and testing in cross-platform environments VirtualBox is free, and supports a wide range of OS environments. Running on Windows, Mac, Linux or Solaris, it makes a nice addition to Sun's portfolio, as an additional developer tool.

What next?

With virtualization as one of the hottest spots for 2008, expect to see lots more activity and acquisitions here this year.  Now that the hypervisor platforms have reset the stage for the coming years, the market is entering a new stage of maturity.  Adjacent markets will continue to heat up, with more new products from big players and emerging companies, and more acquisitions coming. Interesting places to watch -- desktop and application virtualization, virtualization management and virtualization security.  Stay tuned...



Barb Goldworm is president and chief analyst of Focus Consulting, a market research, analyst and consulting firm focused on systems, software and storage. Barb has spent 30 years in various senior management, marketing, sales, engineering, technical and industry analyst roles with IBM, StorageTek, Novell, Enterprise Management Associates and several successful startup ventures. Barb began working with virtualization at IBM in the late 1970s (as a VM technical specialist), and later was VP of Marketing for the company that developed the first PC software distribution product in the mid-1980s (acquired by Novell in 1992). In 2006, she was commissioned by Wiley Publishing to write a book on blades - she agreed but changed the focus of the book to include a major emphasis on virtualization - the book was released in 2007, entitled "Blade Servers and Virtualization: Transforming Enterprise Computing While Cutting Costs", available on Amazon.com, Borders and Barnes and Noble.

Barb is a frequent keynote speaker, chair, and presenter at industry events. In 2007, she chaired the Server Blade Summit on Blades and Virtualization, and has been the keynote speaker for numerous Virtualization Summits this year. She also created and chaired the Interop Network Storage Track and has been one of the top 3 ranked analyst/ knowledge expert speakers at SNW.

Barb has published extensively since the 1990s, and has been a regular contributor to Network World, Computerworld, Computerworld Storage Networking World Online, Tech Target, and now Virtual Strategy Magazine. She has authored numerous research studies, landscape reports, and business and technical white papers on systems, software, storage, storage networking and enterprise management. Barb can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
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