This year's VMWare European Conference in France was marked by a number of significant announcements which aimed at preparing VMWare for a face-off with Microsoft.
The world's biggest software vendor has made Virtualisation a major feature in Microsoft Windows Server 2008 and even if it signed an OEM agreement with VMware a long time ago, things have sure changed since 2000.
Microsoft will ship Server 2008 with Hyper-V technology which slots in between the operating system and the hardware and allows several instances or virtual machines to exist simultaneously.
Search Server virtualisation reports that VMWare and other Virtualisation applications will not support Windows Server 2008 immediately.
At the conference, VMWare announced that it has concluded partnerships with Sun Microsystems, Dell, IBM and HP to bring its virtualisation technology to their servers and it has also signed agreements with McAfee, Sun Microsystems and BEA.
The McAfee deal is particularly significant since it addresses one of the most important issues Virtualisation will have to address: security.
McAfee will start shipping products and services which will include VMWare's latest VMsafe security technology which was unveiled earlier at the conference.
VMSafe is a set of APIs which allow third party developers to protect applications running in virtual machines by monitoring the memory, CPU, disk and I/O systems of a virtual machine.
Shares of VMware have tumbled since the beginning of February and have stabilised at around $60, less than half their 52-week high.