Connectix VM Technology Acquired

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.