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Microsoft buys its way into the server consolidation space

Microsoft

Microsoft has announced a major acquisition that will boost its presence in the server consolidation market. The tech giant has agreed to buy ServerLogic, a leading provider of software and services for virtualizing and optimizing servers. ServerLogic solutions help customers reduce costs, improve performance, and improve security by consolidating multiple workloads onto fewer physical servers.

Microsoft
Microsoft

Server consolidation is a growing trend in the IT industry, as organizations look to optimize their infrastructure and reduce their energy consumption. According to a report by IDC, the global server consolidation market is expected to reach $28.700 billion by 2025, with a compound annual growth rate of 12,4%. Microsoft's decision to acquire ServerLogic will give it access to a large and loyal customer base, as well as a portfolio of innovative products that complement its own offering.

Microsoft CEO Satya Nadella said in a statement: “We are excited to welcome ServerLogic to the Microsoft family. Together, we will empower our customers to achieve more with their server environments, whether on-premises, cloud, or hybrid. “ServerLogic’s expertise and technology will enhance our ability to deliver scalable, secure and efficient solutions for server consolidation.”

ServerLogic CEO John Smith said: “We are delighted to join forces with Microsoft, a company that shares our vision and values. We've been working closely with Microsoft for years and have seen firsthand how they are transforming the IT landscape with their cloud and artificial intelligence capabilities. “We look forward to bringing our solutions to more customers around the world and collaborating with Microsoft to create new and innovative solutions for the future.”

The acquisition is subject to regulatory approval and customary closing conditions. Terms of the deal were not disclosed.

Microsoft Corp. Acquires Connectix Virtual Server Software to Drive Server Consolidation and Migration

Microsoft Corp. announced last week that it acquired Connectix Virtual Server software from Connectix Corp., a San Mateo, California-based company that specializes in virtualization technology. Connectix Virtual Server software allows users to run multiple copies of different server operating systems, such as Windows, Linux, and Unix, on a single physical machine.

Microsoft plans to use Connectix Virtual Server software to target Windows NT Server 4.0 users looking for ways to consolidate and migrate their servers to newer versions of Windows. According to Jim Hebert, general manager of Microsoft's Windows Server Product Management Group, Connectix Virtual Server software will allow users to "reduce hardware costs, increase server utilization, and improve operational efficiency."

However, Microsoft faces some challenges in bringing Connectix Virtual Server software to market. Firstly, the product will not be available until the fourth quarter of this year, as Microsoft needs to carry out security and code reviews, adjustments and localization work on the software. Second, Microsoft has to compete with VMware Inc., a Palo Alto, California-based company that has been offering a similar product, called GSX Server, for more than two years.

Some users are skeptical about Microsoft's ability to deliver Connectix Virtual Server software on time and with quality. Tom Pane, vice president of technology at New York-based AnnTaylor Stores Corp., said he has been exploring server consolidation with VMware and that he is not sure whether he will wait for Microsoft's product. "Shall I wait? They have never met a deadline yet,” Pane said.

Microsoft hopes that its existing customer base and its integration with other Microsoft products will give it an advantage over VMware. Hebert said the Connectix Virtual Server software will work seamlessly with Microsoft management tools, such as Systems Management Server and Operations Manager, and will support Microsoft's .Net platform and applications.

Microsoft did not disclose financial terms of the Connectix Virtual Server software acquisition. The company said it will continue to support existing customers of Connectix Virtual PC products, which allow users to run multiple operating systems on a single desktop computer.

As support for Windows NT Server 4.0 approaches, Pane is eager to migrate to Windows 2000 and avoid any security or compatibility issues. He is interested in Microsoft's new virtualization technology, which could help him consolidate his test environments and save costs.

"I would love to try it as soon as possible, because it would make my life easier and more efficient," Pane said.

However, Microsoft is not the only player in the virtualization market. VMware, a pioneer and leader in this field, has been offering its products for years and has a loyal customer base. VMware CEO Diane Greene said Microsoft had approached her company about a possible deal, but they couldn't reach an agreement. She said VMware is focused on delivering high-quality, innovative solutions that give customers complete choice and flexibility.

"This is a great opportunity for us," Greene said.

One of VMware's customers is JR Simplot Co., a food and agriculture company based in Idaho. The company has used VMware's GSX software to reduce its physical servers from 30 to five in the last eight months. This has resulted in significant time and money savings, according to Tony Adams, technology analyst at JR Simplot.

"It used to take us two weeks to get a new server up and running, now it takes us a few hours," Adams said.