Microsoft (MSFT) is beginning to show beta of its virtualization technology, called Hyper-V. Some in the industry think this will put it on a collision course with market leader and recent IPO VMWare (VMW).
Microsoft is expected to launch is finished product in the first half of next year. As MarketWatch points out "While VMware is considered the leader in virtualization, and has a head start of several years over many of its competitors, the entrance of Microsoft is seen as something that can’t be ignored, even if it may be a year or more before the company shows signs of taking a significant part of VMware’s market share."
VMWare has a market cap of $36 billion, so some success by Microsoft in virtualization could mean a lot for shareholders.
But, no so fast. An analyst from Citigroup had a look at the new beta The firm, quoted at Alley Insider wrote
"We believe VMware’s competitive position remains unchallenged. MSFT’s Hyper-V will initially lack features such as moving live virtual machines on the fly, dynamic load balancing, and advanced power resource management… We also believe customers will question Microsoft’s management of virtualized Linux servers."
If Citi is write, the MSFT launch may be more of an embarrassment for the firm that a success. A bit like the Zune but for a much more sophisticated market.
Douglas A. McIntyre
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