Microsoft Corp. and Citrix Systems said they have expanded their alliance to deliver and market joint virtualization products with Windows Server 2008.
“...a Microsoft General Manager took a high role at XenSource, so it was almost a case of Microsoft occupying the internals (including decision-making roles) in a company that used to be its threat.”XenSource has actually been in Microsoft's pocket for quite some time. This began materialising since they signed a deal and shortly afterwards Xen came over to reside in the vicinity of the Microsoft campus (Redmond, WA). To say more, a Microsoft General Manager took a high role at XenSource, so it was almost a case of Microsoft occupying the internals (including decision-making roles) in a company that used to be its threat. Remember the "keep your enemy close" mantra? That's what it's all about. Now watch how close the companies have become. Here is another new headline:
Microsoft, Citrix to Deliver Virtualization
As you can see, they have become a pair and they are united against Microsoft's threats. Citrix depends on Microsoft and on Windows, so it will defend the very same territories. As the following article from TheStreet.com puts it, there is a symbiotic relationship there.
Citrix completed the acquisition of open source virtualization developer XenSource about halfway through the quarter. It added $2 million to Citrix revenue. XenSource is expected to generate $50 million in revenue for 2008 and about $50 million to $60 million in expenses.
For 2009, XenSource is expected to contribute $200 million to the top line. The bulk of that will come from its server products, CEO Mark Templeton said. XenSource desktop virtualization products will initially be used in corporate pilot programs.
"We think we can build in the server virtualization market the same kind of symbiotic relationship with Microsoft that we had with [the Citrix] Presentation Server," which works atop Windows Server, Templeton said. "We'll be the third player in server virtualization" after VMware and partner Microsoft.