In my previous post I wrote that I don’t understand if Citrix will or won’t compete with Microsoft for server virtualization once Microsoft’s Hyper-V is released. A few readers who apparently work for Citrix responded in comments to my post stating that Citrix and Microsoft will not compete because the two companies are collaborating on virtualization. I am indeed aware of this collaboration but I think that “collaboration” should not be confused with “no competition”.
Consider the following scenario: a few months from now a large organization decides to virtualize its servers and to standardize on a single vendor. If that organization approaches VMware and asks them which product it should use obviously their answer will be “ESX”. Likewise if that organization approaches Microsoft I’m sure their answer will be “Hyper-V”. But what will Citrix’s answer be? If they answer “XenServer” then by definition they are also competing with Microsoft. If they answer anything else then they are indeed not competing, but this means that they are also not selling XenServer, and then why did they buy XenSource in the first place?