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August 20, 2007

Microsoft to horn in on Citrix acquisition of XenSource?

Posted by David Hunter at 11:30 PM ET.

Last week, thin client software provider Citrix agreed to purchase virtualization vendor XenSource for a whopping $500 million. Now the buzz is that Microsoft would prefer to own XenSource themselves and may derail the deal:

‘It is quite likely that Microsoft may put in a competing bid on XenSource to the level of $1 billion,’ said Trip Chowdhry, senior software analyst at Global Equities Research. ‘And I would say if Microsoft puts in a bid, IBM won’t stand still.’

Chowdhry said a Microsoft offer would make sense for several reasons. The Redmond, Wash.-based software giant has ‘been a total failure when it comes to virtualization,’ he said. Microsoft is in the process of building its own virtualization technology, called Viridian, which will be integrated with its Windows Server product slated to be released in the third quarter of 2008.

XenSource and Microsoft have partnered since last year, and XenSource is located close to Microsoft’s headquarters.

Analysts were far from unanimous regarding whether Microsoft will move on XenSource.

More speculation pro and con by following the link.

Filed under Acquisitions, Citrix, Coopetition, Microsoft, XenSource

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2 Responses to “Microsoft to horn in on Citrix acquisition of XenSource?”

  1. Microsoft bluffs with their weak virtualization hand -- Microsoft News Tracker Says:

    [...] Since Citrix Desktop Server (when it uses virtual machines for client desktops) is virtualization software agnostic, the exclusive choice of Microsoft’s VHD format is some sort of win, but Citrix’s “longtime alliance” with Microsoft is around the odd duck of multiuser client versions of Windows and Citrix’s serious involvement with the more generally useful virtualization for server operating systems only started when they bought XenSource which had already licensed VHD. As for Microsoft’s Softgrid using VHD, that’s got to be a no-brainer so the real question is what is taking them so long? [...]

  2. Microsoft touts virtualization efforts, acquires Calista | Microsoft News Tracker Says:

    [...] Finally, Microsoft renewed their vows with satellite Citrix, the long time provider of Microsoft-based thin client solutions and proud new owner of XenSource, and promised a new virtualization marketing push based on Windows Server 2008.   Filed under OS – Client, Windows Vista, Acquisitions, Coopetition, Virtualization, Microsoft, Citrix, Application Virtualization, Hyper-V   [Permalink] [TrackBack] [...]

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