Microsoft has acquired virtual machine (VM) software from Connectix, a privately held company based in San Mateo, CA, for an undisclosed sum. VM technologies allow multiple, different operating systems (OSs) to simultaneously run on a single PC. Microsoft made the purchase primarily to encourage Windows NT 4.0 customers to upgrade to Windows Server 2003—with Connectix's VM software, these customers need not replace their NT 4 applications, but can host them within a virtual system that allows them to run NT 4 on Windows Server 2003. Connectix's software will also help customers consolidate multiple small servers on a single large server and could help Microsoft provide applications for the Macintosh with fewer development resources.

In an unusual move, Microsoft did not acquire Connectix, but purchased only the company's VM products. It also plans to hire the developers who work on those products. Connectix will continue as a separate company, will support existing customers for its VM software for at least six months, and will continue to sell a handful of Mac products, including a Mac-PC networking application called DoubleTalk. Neither company explained why the acquisition was only partial, but given that Connectix has sold its most valuable assets and that only sales and support personnel remain on staff, its future as an independent company seems doubtful.

Boosting Windows 2003, Fending Off Oracle

Connectix, along with its main competitor VMWare, specializes in VM software that allows a single desktop or server PC to simultaneously run multiple OSs. Once installed on the "host OS," virtualization software allows new "guest" OSs to be installed and run on the host. Because the VM software provides a complete virtual PC environment, the guest OSs need not be the same as the host. A Windows host can be used to run a Linux guest, for example.

The acquisition of Connectix's VM software for Windows servers, currently in beta release and called Virtual Server, serves several important purposes for Microsoft. First, it eases concerns of customers who might be leery about upgrading from older version of Windows (such as NT 4.0) due to fears of accidentally breaking existing applications. Microsoft hopes to allay those fears and increase Windows 2003 sales by providing software that allows Windows 2003 to host NT 4.0 along with those existing applications.

Second, Microsoft hopes to use its newly acquired VM software to allow customers to consolidate servers. Oracle has been running a series of print and radio advertisements in which it claims that Oracle’s Collaboration Suite supports e-mail server consolidation better than Microsoft Exchange. The combination of Windows 2003, the upcoming release of Exchange (code-named Titanium), and the newly acquired virtualization software should increase customers' ability to consolidate e-mail servers.

Microsoft expects to have a customer beta of Virtual Server available in Mar. 2003.

Stability of Host OS Critical

Using VM software to consolidate servers on to a single host makes the stability of that host even more important. As an old adage says, if you put all your eggs in one basket, you had better watch that basket. A worm or virus that brings down a single server is inconvenient, but the same worm or virus bringing down a host running five guest servers is much more serious.

Applying patches also becomes more complex. A server farm can be patched on a rotating basis with individual servers being taken down temporarily and the work load being temporarily handled by other servers. Patching and rebooting a host OS forces all guest OSs to be taken down and rebooted as well.

If Microsoft wants to see its newly acquired VM technology widely used for server consolidation, it needs to address these concerns, perhaps by producing a specialized version of Windows (possibly a new Datacenter Edition) that is designed solely to function as a host OS and which is even more locked down than its current products.

Effects on Apple, Competitors Unclear

While Microsoft was clearly most interested in Connectix's server virtualization technology, it also acquired a set of desktop virtualization software including Virtual PC for the Mac—a product that allows Macintosh computers to run Windows applications by hosting Microsoft Windows within Apple’s OS X. Virtual PC for the Mac has been an important part of Apple’s "Switch" campaign because it allows Macintosh users to run applications for which there is no native Macintosh equivalent (such as vertical applications or in-house corporate applications).

Virtual PC for the Mac will move to Microsoft’s Macintosh Business Unit, and the company says it will continue to be developed and enhanced. Although the company also says it will continue development of its native Macintosh version of Office, the Virtual PC for the Mac gives Microsoft an exit strategy if it changes its mind: Mac Office could be replaced by the PC version running on Virtual PC for the Mac.

Microsoft also acquired Virtual PC for Windows, a desktop version of its VM software, and Virtual PC for OS/2, which allows OS/2 to host other OSs. Although the Windows product is likely to continue, the life of the OS/2 product could be short.

VMWare, Connectix’s main competitor, produces a very similar product line and is now in the unenviable position of competing against a similar set of features being provided by Microsoft, probably included directly in Windows at no additional cost.

Resources

For more information on Microsoft's plans for Virtual Server, see www.microsoft.com/windowsserver2003/evaluation/news/bulletins/vmnews.mspx.

For more information on application compatibility and Windows Server 2003, see "Applications Require Updates for Windows .NET Server" on page 7 of the Jan. 2003 Update.

Connectix is at www.connectix.com.

VMWare is at www.vmware.com.