Microsoft Hyper-V to VMware: We Have You Surrounded

Microsoft (MSFT) and Novell (NOVL) had their first virtualization child Thursday. A joint virtualization effort that couples SUSE Linux Enterprise Server from Novell operating with Windows Server 2008 Hyper-V. The news itself isn’t all that important–part of the Microsoft-Novell pact–dictated that SUSE would use the software giant’s virtualization technology. But if you zoom out the Novell move to offer Microsoft virtualization in mixed source environments (statement) is just the latest item this week showing that Microsoft is flexing its distribution muscles.

The message is clear: Microsoft’s Hyper-V has VMware (VMW) surrounded and the software giant will beat the virtualization drum forever. Sure, VMware has just as many distribution agreements, but Microsoft’s ecosystem can kick into overdrive quickly. It’s an old strategy for Microsoft and I’d bet it’s the biggest reason VMware now has Paul Maritz, a former Microsoft honcho, as CEO. If VMware (all resources) is going to stand a chance it needs to understand what it’s up against.

Microsoft’s moves this week aren’t necessarily about technology. Hyper-V is good enough to annoy VMware, but isn’t its technology peer just yet. This is about art of war and why Microsoft could squash VMware with its heft. Novell’s pact with Microsoft gets Hyper-V in mixed source environments. Microsoft says the offering is “the first to include technology developed by both companies at their joint Interoperability Lab.”

• Dell (DELL) launched blades, support and services focused on Hyper-V. It also integrated its EqualLogic storage lineup with Hyper-V (statement). In a nutshell, Dell is supporting all of Microsoft’s virtualization technology and offering services to get customers up and running. Dell also launched services for VMware too.
• HP (HPQ) updated its servers, storage, software and services for Microsoft’s virtualization offering. Sun did much of the same and said it was collaborating with Microsoft to make the Sun xVM server play well with Windows Server 2008 Hyper-V. In a nutshell, the lineups of both companies will be interoperable with Hyper-V.
• NetApp offered a storage line-up optimized for Hyper-V.
• AMD (AMD) Opteron processors are lumping in Hyper-V support.

Individually these announcements don’t add up to much. If you put them together you realize that Hyper-V is now everywhere. Support and interoperability doesn’t completely equate to a market share grab, but it’s early. Now that VMware is surrounded the games will really begin.

Comments

[Jonathan Scott:]

your picture speaks a 1000 words to say nothing of the humor. MSFT clearly does not lack for persistence. When an MSFT executive was asked about MSFT investments that don't generate profits, the response is MSFT has to invest on many broad fronts in order to keep the R&D team alive within the company. I would say that is true R&D.

2008 Sep 11 04:51 PM

[kurt walter:]

Only way VMW can beat MSFT is to have a better product at a better price. It is does, good. If not. Well, see ya.

2008 Sep 11 05:17 PM

[Piston36:]

MSFT did they crush Nintendo with the Xbox? MSFT has their browser crushed Mozilla? Has MSFT crushed Quicken? Have they crushed the Iphone with a 5-6 year head start with Windows mobile? Do I even need to mention Vista? MSFT is a blind behemoth that can't find direction. I think you give them too much credit to assume they will come in and take over a market niche. You do have to take notice with all their financial backing that they might do something productive, but as you can tell I doubt it.

2008 Sep 11 11:53 PM

[User 211715:]

You forgot to mention that VMW has a 10 year head start and that CSCO and INTC are huge backers of VMW. What MSFT should do is acquire EMC to control the majority stake in VMW, than spin-off/shop EMC to use the proceeds to pay for the transaction. They can probably sell EMC to CSCO, DELL, or HPQ.

2008 Sep 12 12:45 PM

[steveballmer:]

VM should just surrender now, so should Gaggle!

2008 Sep 13 01:58 PM

[Tech 2020:]

This is Crazy, VMWARE is much better than anything Microsoft can do in the space. First of all, VMWARE owns the key I.P. in this space. Microsoft is not even concentrating in this space, they want to become a media company now because of their reach. VMWARE is a big play here because of what i am hearing now, that Microsoft wants in compete with VMWARE no chance.

2008 Sep 17 09:51 AM

[Francorp:]

I am a big beleiver in VMware, my faith is continually being tested by the stock price, but the technology is not even close. I have worked in this industry with VM extensively and they have the best technology. Hopefully in the end that translates into a better stock price!

2008 Sep 17 03:35 PM