Microsoft Munches Kidaro

Microsoft has agreed to buy desktop virtualization startup Kidaro for an undisclosed sum, in an effort to beef up its desktop management story.

Kidaro, founded in 2005, is one of a tiny group of suppliers that manage virtual desktops created by other vendors' wares. Kidaro works in desktop virtualization environments based on VMware Player and Microsoft Virtual PC.

Another firm competitive with Kidaro, named Dunes, was bought by VMware in September 2007.

Microsoft plans to sell Kidaro's software in future releases of its Desktop Optimization Pack for Software Assurance (MDOP), an enterprise suite for managing desktop inventory, application virtualization, group policy, desktop diagnostics and recovery, and error monitoring.

No specific dates for the new packaging were provided by Microsoft, but the company isn't likely to waste time: Microsoft has made desktop virtualization a priority, as demonstrated in a flotilla of recent announcements that include the purchase of Calista and an expanded alliance with Citrix/Xensource.The acquisition of Kidaro is an important component of our virtualization strategy, and it delivers a powerful new tool to help enterprise customers optimize their desktops,” said Shanen Boettcher, general manager of Windows product management at Microsoft, in a prepared statement. “Virtual PCs can help businesses address a number of challenges around application compatibility, mobility and business continuity. Kidaro’s seamless user interface and management capabilities allow enterprises to more easily use and manage Virtual PCs."

Kidaro has 35 employees, including a development team in Tel Aviv and an official headquarters group in Redwood City, Calif. It's not yet clear where they'll all end up. Kidaro CEO Kevin Brown, who was also working out terms of his own retention with Microsoft, seemed positive. "We're in the planning process, but people and technology were a very important part of the deal," he said. "There are going to be lots of opportunities."

Kidaro had gained $14 million in venture funding from Opus Capital Ventures, Storm, and Genesis. The company has a "handful of Fortune 500" customers, Brown says, though none have been named.

No date has been revealed for finalization of the deal.

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