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XenSource Optimistic On Acquisition

It's been a busy time for XenSource. Right on the heels of the release of their latest hypervisor, the company was grabbed by thin-client specialist Citrix. XenSource is optimistic that this acquisition will leverage the presence and resources that Citrix has garnered over the years and put even more spark into the virtualization race.

Despite the fact Citrix has their own version of Virtual Desktop Inftrastructure (the Citrix Desktop Server), the company saw a clear opportunity to give VMware a run for it's money and market share. It almost makes the whopping $500 million in cash and stock that it paid for the acquisition seem a small price to pay to enter the action of the virtualization market. One has to wonder whether Citrix now wants to compete directly with VMware or whether this is simply an effort to make sure they aren't locked out in the cold while VMware takes home the spoils.

Still the question remains: given VMware's market prowess, it this acquisition even relevant? For existing Citrix customers, it just might be, but can it influence those businesses pondering virtualization, yet not quite ready to make the leap? How much momentum this provides VMware's competition remains to be seen, but one thing is for sure: a little competition is not a bad thing. In fact, this should keep VMware on their toes. But only after the dust settles will the market realize whether this acquisition means anything or not.

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