DailyTech reports Microsoft is trying to convince people that desktop virtualization is costly, and inappropriate for most:
Microsoft is among these detractors. Despite efforts to support virtualization and offering virtualization products, Microsoft remains reticent on the issue and has at times spoken out, in effect, against virtualization. Ultimately, if everyone were to switch to thin-client desktops with virtualization (ala a widespread cloud computing scheme), Microsoft might make considerably less revenue from its licenses as thin client licenses often cost less than "fat clients" like Microsoft Windows. Microsoft would be faced with trying to sell products for a new kind of ecosystem, one in which it is not necessarily the top competitor in.
With the impending release of Windows 7, Microsoft's anti-virtualization rhetoric is in full effect and is most vocally heard at its Windows 7 workshops, which are touring the country. At these workshops, titled "Windows and the Enterprise", it has accused virtualization of being a costly technique, inappropriate for most large businesses -- a commentary very much at odds with the perspective of many major players in the tech industry.