How Microsoft used its close partner to fight Red Hat and VMWare

A couple of days ago we explained how Microsoft grabs 'pieces' of its competition through acquisitions. We also alluded to the fact that Microsoft will try 'pulling a Netscape' on VMWare. It is all part of continued coverage of what seems like a Microsoft acquisition-by-proxy of XenSource, which several GNU/Linux distributions depend on. We have presented more than enough evidence over the past few months (be sure to read it if you remain unconvinced). There is some more recent news coverage that backs this assertion as well.

Remember that Citrix virtualisation is all about Xen and mind new bits of information such as the following:

Microsoft Corp. and Citrix Systems said they have expanded their alliance to deliver and market joint virtualization products with Windows Server 2008.

It is rather amazing how Microsoft can simply buy its threats and do so by proxy. The Federal Trade Commission cannot stop this or conduct a probe. Money talks.

“...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.

The main point for bringing this up is not only the Novell deal. Remember that some of Novell's legacy programs rely on Windows. Also remember that Novell depends on Xen to a great degree, but XenSource is now Citrix, which works to serve Microsoft's interests. But the main point to make here is that Microsoft has explicitly mentioned plans to acquire many companies, including open source software. These plans are already becoming a reality, yet sometimes it is hard to see. It is a case of "if you can't beat them, buy them." If done under the radar of critics, then all the better. ⬆