Microsoft catching up?

Implications: Microsoft's recent announcements in the virtualization arena prove that they are serious about their role in competing with VMware & Citrix: 1) Their new management tool for migrating Virtual Apps from one physical device to another (like VMware's VMotion) show that they continue to make progress but that they are still a long way from catching VMware in the technology arena. 2) Microsoft's strategy remains focused upon offering just enough virtualization services at a much lower cost for those that believe they don't require the functionality that's available from both the VMware and Ctirix's Xen products.

Analysis: I believe that this is a flawed strategy and proves that they are still competing from a position of weakness that relies on pricing as their key competitive position.  In the meantime, both VMware & Citrix continue to innovate with new product and system's capabilities which clearly focus upon advanced management and service features across the entire Virtualization ecosystem.  Saying that, Microsoft will continue to emerge as a major competitor driven by the business partnerships that they maintain with several of the key software and hardware suppliers.