Microsoft launches virtualization software
Software giant Microsoft Corp. looks to overwhelm another competitor’s nascent technology on Wednesday with the release of an enterprise server product that brings something called “virtualization” to the forefront of the IT industry.
In Toronto to announce Microsoft’s largest enterprise software launch yet, chief operating officer Kevin Turner said the company developed its Windows Server 2008 software after witnessing how strong the demand was from the industry for virtualization tools.
Normally, chipsets residing in powerful computer servers only use 15% or less of their capacity, but virtualization software emulates the machine’s hardware and makes it possible to run multiple operating systems without the need for additional equipment.
The benefits for IT departments are staggering. Instead of using eight machines to do one job, it can be done by only one, saving companies millions in IT expenditures, maintenance and energy costs.
“We want to help our customers save time and money,” said Mr. Turner in an interview. “The ability to spend less time on maintenance and more time on creating innovative things to the marketplace … the way to do that is to allow people to maximize their resources.”
However, Microsoft is just getting in now and it does face established competition. The current virtualization market leader is Palo Alto, Calif.-based VMware Inc., which already has about 85% of the market after popularizing the idea that you could efficiently use all your computers processing power.
While it’s not first to the game, Microsoft’s foray into the realm of virtualization is well timed. Only 10% of the potential market is already using the software and its value is expected to double from US$6.5-billion to US$11-billion by 2010, according to data from research firm Gartner Inc.
Yet Microsoft won’t make an immediate splash on the market, said Drue Reeves, a vice-president research director with IT analyst firm Burton Group.
“In the short term, I don’t think it’s going to have an effect on VMware’s [business],” said Mr. Reeves, “But long term, it’s a different story.
“As Microsoft ties their applications to its operating system … that allows them to capture a better portion of the market.”
VMware is certainly not taking Microsoft’s announcement lying down and is even taking a page from the software giant’s playbook. The company announced agreements with Hewlett-Packard Co., Dell Inc., International Business Machines Corp. and Fujitsu Siemens Computers to distribute their servers with VMware software already installed — a tactic that Microsoft has perfected in ensuring its operating system is run on most of the world’s computers.
“Microsoft is a serious and powerful competitor, but we’re doing a lot of things to level the playing field,” said Bogomil Balkansky, senior director of product marketing at VMware in an interview. “We do have the better technology and product-wise, we’re years ahead of Microsoft.”
Microsoft plans to sell its latest Windows Server product for about one-third less than what VMware’s software costs. But customers will still need to spend a bit of time testing both software offerings before deciding which to use for their IT needs, added Mr. Reeves.
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