Microsoft discloses virtualization move

Microsoft Corp., the world's largest software maker, Monday disclosed its plans to allow more versions of the desktop OS to be virtualized in order to become a major player in a hot field called virtualization.

Microsoft has purchased a start-up called Calista Technologies, which was founded in 2006 and is based in San Jose, California, for an undisclosed sum. It also expanded its partnership with Citrix Systems, according to media reports.

"This is Microsoft coming out and staking the claim that they are serious about virtualization," said Forrester Research analyst Natalie Lambert. "When you think of VMware, you think virtualization. That is going to be a hurdle for Microsoft."

Virtualization is one of the most important developments in the software industry, because it disrupts the traditional business model, which marries one machine to one piece of software, such as an operating system.

The technology allows companies to save on hardware costs by running existing equipment more efficiently, while allowing companies to deploy applications faster without worrying that certain pieces of software will clash with one another.

Microsoft is also relaxing some of its licensing policies to allow use of virtualization software with more versions of its Windows Vista operating system and lowering some fees associated with using the technology.