We use cookies and other similar technologies (Cookies) to enhance your experience and to provide you with relevant content and ads. By using our website, you are agreeing to the use of Cookies. You can change your settings at any time. Cookie Policy.

At first glance, Citrix’s $500 million offer for hypervisor provider XenSource fills an obvious gap in Citrix’s desktop virtualization product line: while Citrix built its business offering a terminal server deployment path for Windows (and other OSs), XenSource competes the picture by providing a way to virtualize the client side as well. It also nicely steals the headlines a day after VMware’s partial IPO.

But the real buzz is not so much about the deal itself, but what happens with Microsoft, which happens to be the silent 16-ton gorilla sitting in the back of the room. Citrix has had a technology-sharing arrangement with Microsoft for roughly a decade, while XenSource has enjoyed access to Microsoft’s budding Viridian technology (which will form the core of its own upcoming Windows hypervisor itself) as part of Microsoft’s policy to support interoperability with Linux environments. Yet, when Microsoft actually productizes its next generation Windows hypervisor, code-named Viridian, as part of Windows Server 2008, that would be in direct competition with the Xen technology.



As my colleague Dana Gardner summed it up, ‘The move further cements an already strong relation with Microsoft on the part of Citrix, but complicates the picture when it comes to open source.” That is, XenSource’s technology being open source, it doesn’t own it. Or as industry analyst Brian Madden asked, “What exactly did they just pay $500M for?” We’ll be talking about this tomorrow as we record the next BriefingsDirect podcast.

We’ll take the safe route on this one. Citrix had a hole in its desktop virtualization offerings, and as the best-known emerging rival to VMware, XenSource was the ripest fruit for the picking. Nonetheless, as Citrix is not an open source company, we’d concur with 451 Group analyst Rachel Chalmers, as quoted by eWeek’s Peter Galli today that in all likelihood, the combined Citrix/Xen would likely spin out the Xen project into a nonprofit open source foundation, a la Eclipse. In essence, Citrix would be buying a company using the Red Hat subscription model.

Our take is that the deal won’t necessarily shake the cooptition that Microsoft and Citrix have engaged in for years. If you recall, Citrix provided the first Windows terminal server as part of a technology sharing deal with Microsoft, then Microsoft chimed in with its own, followed by Citrix’s fancy footing to extend its terminal server across multiple OSs. When Microsoft finally unleashes Viridian as part of Windows Server 2008, its need for Linux interoperability won’t go away.

About the Author

Tony Baer is a Senior Analyst at Ovum, covering application lifecycle, SOA, and IT Service Management. Tony is a well-published IT analyst with over 15 years background in enterprise systems and manufacturing. A frequent speaker at IT conferences, Baer focuses on strategic technology utilization for the enterprise. Baer studies implementation issues in distributed data management, application development, data warehousing, and leading enterprise application areas including ERP, supply chain planning, and customer relationship management. As co-author of several books covering J2EE and .NET technologies, Baer is an authority on emerging platforms. Previously chief analyst for Computerwire's Computer Finance, Baer is a leading authority on IT economics and cost of ownership issues.

More by Tony Baer

-1-

1  

Explore Our Topics

  • EDITOR'S BRIEFING
  • Virtual Conferences
  • Webinars
  • Roundtables

BPM in Action

March 10, 2011

The sixth annual BPM in Action 2011 Virtual Conference will explore cutting-edge market developments in BPM and describe how to leverage them for improved business operation and performance. More

View All Virtual Conferences

Smart Case Management: Why It's So Smart.

Date:Nov 05, 2009
Time:12:00 PM ET- (17:00 GMT)

REGISTER TODAY!

Date:Oct 29, 2009
Time:15:00 PM ET- (19:00 GMT)

REGISTER TODAY!
View All Roundtables
  • Research Library
  • Podcasts
  • News

Joe McKendrick: Part II of II: Designing Evolve-ability into SOA and IT Systems

In part two of Joe McKendrick's recent podcast with Miko Matsumura, chief strategist for Software AG, they talk about how SOA and IT systems need to change and grow and adapt with the organization around it.

Listen Now

Phil Wainewright: Helping Brands Engage with Social Media

Phil Wainewright interviews David Vap, VP of products at RightNow Technologies, and finds out how sharing best practices can help businesses understand how best to engage with online communities.

Listen Now

Peter Schooff: Making Every IT Dollar Result in a Desired Business Outcome: Scott Hebner of IBM Rati

Scott Hebner, Vice President of Marketing and Strategy for IBM Rational, discusses a topic on the top of every company's mind today: getting the most from IT investments.

Listen Now

Jessica Ann Mola: Where Will BI Fit In? Lyndsay Wise Explains

In BI, this tough economy and the increasing role of Web 2.0 and MDM are certainly topics on people's minds today. WiseAnalytics' Lyndsay Wise addresses each of them in this informative podcast.

Listen Now

Dennis Byron: Talking with...Deepak Singh of BPM Provider Adeptia

Deepak Singh, President and CTO of Adeptia, joins ebizQ's Dennis Byron in a podcast that gets its hand around the trend of industry-specific BPM.

Listen Now
More Podcasts
  • Most Popular
  • Quick Guide
  • Most Discussed

Quick Guide: What is BPM?

Learn More

Quick Guide: What is Event Processing?

Smart event processing can help your company run smarter and faster. This comprehensive guide helps you research the basics of complex event processing (CEP) and learn how to get started on the right foot with your CEP project using EDA, RFID, SOA, SCADA and other relevant technologies. Learn More

Quick Guide: What is Enterprise 2.0?

A lot of people are talking about Enterprise 2.0 as being the business application of Web 2.0 technology. However, there's still some debate on exactly what this technology entails, how it applies to today's business models, and which components bring true value. Some use the term Enterprise 2.0 exclusively to describe the use of social networking technologies in the enterprise, while others use it to describe a web economy platform, or the technological framework behind such a platform. Still others say that Enterprise 2.0 is all of these things. Learn More