Microsoft enters virtualization with Windows server

Virtualization is one of the fastest-growing segments of the software industry because it disrupts the traditional business model that marries one machine to one piece of software like an operating system.

"Even though VMware has a lot of customers, made a lot of money and a lot of traction, the bulk of the market is still available to be addressed," said John Enck, research vice president at Gartner. "In the long-term, this is going to be a very credible alternative and credible competition to VMware."

Before the Windows Server launch, VMware announced on Tuesday an agreement to integrate its virtualization software into computer servers from Dell Inc, Hewlett-Packard Co and International Business Machines Corp.

Ultimately, Microsoft sees virtualization technology moving from today's main application of consolidating servers to a wider range of possibilities, including virtual desktops and applications.

SERVER LAUNCHES

Along with Windows Server 2008, Microsoft will also take the wraps off the upgrade to its SQL Server database software, due out in the third quarter, after delays pushed back its launch. The company will also highlight the latest version of its developer software, Visual Studio 2008.