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SWsoft tries to virtualize China before VMware speaks the language

And XenSource is annoying

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Beloussov the Bold

Chatting with Beloussov is one of the more refreshing experiences for a technology journalist. This feisty Russian has yet to attend sugar-coating school.

For example, Beloussov harbors a bit of resentment for the attention XenSource receives. According to our sources, XenSource will make about $8m in revenue this year versus more than $100m for SWsoft. XenSource, however, receives far more press.

"Even though Xen is very popular with the media, we just don't see them in deals," he said.

And what about Microsoft?

"Right now we depend on Microsoft and Linux to deliver some of the core functions comparable to what VMware delivers," Beloussov said. "So, we hope they ship a good product (next year). They are our best partner."

That sounds pleasant enough, right? Well, here comes the sour-coating.

"In reality, it does look quite suspicious right now (as to whether Microsoft will ship a 'good' product)," Beloussov said. "They are delivering the product late and cutting the features. What they are planning to ship right now is like what VMware was shipping two years ago. That is really a concern."

Having dug at XenSource and Microsoft, Beloussov found time to hit the touchiest of subjects around VMware - EMC's majority stake in the company. In case you haven't noticed, VMware's market capitalization is close to matching that of EMC. In addition, EMC's long stagnant stock price has recently started moving north thanks to goodwill engendered by its virtualization software baby.

"How much sense does it make for VMware to be owned by EMC." Beloussov asked. "As a separate entity, it will probably be more interesting.

"Also, right now it's a concern for HP, IBM and Dell. EMC is certainly going after the server market in the long run."

That should fuel a fire or two.

Speaking of the long run, you have to wonder what happens to SWsoft. It enjoys one of the strongest desktop virtualization plays thanks to Parallels and has what must be the second largest x86 server virtualization business - one centered on a unique play. Will Microsoft, Sun, Red Hat and others let SWsoft stay independent? We doubt it. ®

Bootnote

Those of you into virtualization will want to check out our Nov. 6 E-Symposium on the technology. Of course, there are probably about 20 ads around this story telling you the same thing.

Register hack Ashlee Vance has just pumped out a new book that's a guide to Silicon Valley. The book starts with the electronics pioneers present in the Bay Area in the early 20th century and marches up to today's heavies. Want to know where Gordon Moore eats Chinese food, where Steve Jobs and Bono hang out or how Fairchild Semiconductor got its start? This is the book for you - available at Amazon US here or in the UK here.

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