Valovic on Virtualization

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Thanks for the Use of the Market!

In a recent ComputerWorld article, "Microsoft's Online Woes Hint at Larger Vulnerability," Elizabeth Montalbano writes:

"Microsoft has built its massive software business by watching other companies take the lead in emerging technology markets and then following fast with competitive products that eventually become dominant once those markets begin to pay out. The company did it against IBM during the birth of the PC, Netscape during the browser wars, and is currently making a strong showing against Sony and Nintendo in the game-console market. However, Microsoft's inability so far to capitalize on online advertising and services and its inability to make any headway against Google shows that, despite its huge cash reserves, this strategy may no longer be effective."

Not so for virtualization of course. As Montalbano alludes to later in the article, there's a very credible school of thought out there that holds that this is exactly the strategy that Microsoft is pursuing in virtualization and very well may succeed with it.

Posted by Tom Valovic on 08/04/2008 at 12:49 PM


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