I find the price is still pretty high : even for the Foundation version, that's still at least $1k per server. For most basic servers, that's still a 30% to 50% price increase if you decide to go virtual.

Mathieu - take a look at http://vmware.com/products/server/, they offer the actual server for free. Unless your forking out $50k for a failover solution (including SAN etc) then go for the freebie! Backup etc can still be done by your usual system backup.

For VMWare Server yes, but that's not the same as VMWare ESX Server.

I'll wait to see what can be done with ESX 3i + APIs when it comes embedded in the servers themselves (hopefully without a big price hitch).

VMWare is not well-liked by the channel. Citrix has a real opportunity here on both price and performance with their Xen-based products. SMB is not a risk-adverse as large enterprises.

Old-school companies will continue to buy 1st generation virtualization, but the more nimble smaller companies already know and trust Citrix.