A new feature that Microsoft is integrating with Windows Server 2008 will allow several operating systems to run simultaneously on a single physical computer, a move that will turn the heat on the likes of VMWare, the software virtualisation specialist.
Unsurprisingly, VMWare's share prices have been down sharply by nearly 17 percent since Microsoft released Hyper-V for selected versions of Windows Server 2008.
Hyper-V is expected to allow companies to cut their number of servers by consolidating them, thereby cutting running and operating costs, and allowing improved hardware utilisation - your servers will be toiling harder rather than sitting idle most of the time.
Talking to Computerweekly.com, Bill Laing, corporate vice-president of Windows server and solutions division at Microsoft, said that "Hyper-V builds on Microsoft's focus to provide tools which IT pros can rely on for their demanding, mission-critical workloads."
Observers, like Jonathan Hassell, reckon that while Hypervisor is not a VMware killer for the time being for a number of reasons, the fact that it has Microsoft's might behind it combined with a compelling price make it a viable competitor.