Over at ServerWatch, Paul Rubens pondered if Microsoft will do to VMware what it did to Netscape. Today, the IT sphere is buzzing with news of changes to Windows Vista's virtualization policy and Microsoft's acquisition of Calista Technologies.

Should VMware worry?

BusinessWeek points out why VMware's unlikely to be throwing in the towel just yet, or in the foreseeable future for that matter.

While there's little doubt the market will continue to grow, Microsoft's offerings might not be good enough yet to substantially erode VMware's lead, says IDC's Humphreys. That's because it doesn't include some key features, notably the ability to switch from one running server to another, a feature that VMware has offered since 2003. "For a lot of customers, that's a prerequisite--a ticket to the dance," Humphreys says. [IDC analyst John Humphreys]

It also helps that VMware is synonymous with virtualization. Just sayin'.