Microsoft Betting Big on Virtualization; Acquires Calista Technologies. Citrix Up Next?

Microsoft plans to announce today what it calls a companywide strategy to accelerate broad adoption of virtualization by its customers. As part of the its new approach, the Redmond-based software giant unveiled a suite of services aimed at reducing the number of servers businesses need to use, separating applications from operating systems, reducing costs and lowering carbon emissions.

Microsoft announced that it competed acquisition of Calista Technologies , a California-based startup that makes computer graphics for virtualized computers, and an expanded partnership with Citrix Systems, a VMware competitor based in Fort Lauderdale, Florida. Microsoft and Citrix will jointly market services that virtualize computers, operating systems and applications.

Microsoft wouldn’t disclose how much it paid for Calista, but Roger Kay, President of technology research firm Endpoint Technologies Associates,  speculates that the price tag was likely south of $100 million. He also says Microsoft may be interested in acquiring Citrix. “Citrix, on its own, has a small market share,” Kay says. “VMware was cleaning its clock.” A Microsoft-Citrix combination could present formidable competition to VMware, he suggests. Buying Citrix, however, would be a significant deal: The company has a market cap of $6.4 billion.

[Source: Forbes ]

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