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.