VMware Enters Brave New World at VMworld, Desktop and Server Virtualization's Biggest Stage
On the eve of virtualization's biggest week, VMworld, VMware, the undisputed king of desktop and server virtualization, faces down new competition from Microsoft and Citrix and internal unrest from within. Citrix Systems XenSource and Microsoft's Hyper-V present virtualization competition in a space VMware once dominated alone. CEO and President Diane Greene was fired and Mendel Rosenblum, VMware's chief scientist, who co-founded VMware with Greene, resigned.In the summer of 2007, VMware, with a successful IPO under way and hardly any serious competition in the market, began to look more and more like a critical darling of the IT industry and the company poised to dominate the x86 virtualization market for the foreseeable future. Now, in the autumn of 2008, those days seem long gone.
It started almost immediately after the VMware IPO, when Citrix Systems laid down $500 million to buy XenSource to challenge VMware both in the data center and on the emerging desktop virtualization scene. Then Microsoft-belatedly-rolled out with Hyper-V, which could help the software giant build a franchise with small and midsized businesses that are interested in virtualization but had not already invested in VMware.