CNET reports firms like VMware are trying to make virtualization a part of the server hardware, instead of the operating system:
Companies like VMware, and more recently XenSource, got their start with standalone virtualization software that let customers run several operating systems simultaneously on a single computer. But Linux sellers and Microsoft, unwilling to cede their influential position selling the foundational software of a computer, are trying to make virtualization a feature of the operating system.
While Linux sellers and Microsoft are trying to make virtualization a feature of the operating system, specialists are signing deals to build it into the hardware. Such a move has strategic importance in these relatively early days of virtualization, elevating the profile of specialists' products.
Now the virtualization companies are trying to make their software a feature of the server instead. XenSource and VMware both have added new versions of their products that can be embedded directly in servers, and both companies have lined up major server makers who will build it in.
"With virtualization, where you can run any operating system on top, it seems a lot more logical that it would be effectively a layer sitting on top of a server," said Illuminata analyst Gordon Haff. "Why wouldn't it be supplied with the server?"