Virtual maverick

Observing the success Palo Alto's VMware has had with virtualization, Microsoft unveiled a suite of business services that separate applications from operating systems, ultimately reducing the number of servers businesses need to use.

"Virtualization" makes it possible to harness the capabilities of multiple computers or servers from a single source. One popular virtualization solution is Parallels, which enables Mac users to run Windows and Windows-friendly software from their computers.

ETA president Roger Kay told Forbes that as the industry shifts toward web-based services, Microsoft must put something on the market quickly. He also said Microsoft Office will "become less relevant" in ten years, in part because of web-based Office suite competitors.

But unlike the search ad field, where it plays third fiddle to Google and Yahoo, Microsoft may still corner the virtualization arena. It already dominates the business software market.

Its biggest competitor, VMWare, was dubbed "the new Google" and is funded in part by Intel, reports CMSWire. But VMware's promise is tempered by free virtualization offerings on the market and Microsoft's aggressive strategy to debut virtual server capabilities in some editions of Windows Server 2008.

Market dominance is still a coin-toss, however. Microsoft estimates that only 5 percent of businesses are using virtualization technology.