Microsoft, seeking to preserve the dominance of its Windows franchise, launched a new software application that takes aim at VMware, a provider of "virtualisation" technology that allows a single computer server to operate like many machines.

Systems Centre Virtual Machine Manager 2007 allows companies to deploy virtualisation technology, centralise management and convert machines running VMware to a Microsoft format.

The move is considered one of Microsoft's first major efforts to cut into the lead held by VMware and thus undercut a potential threat to Windows server software.

"The sleeping beast has awoken," said Stephen Elliot, research director at IDC. "Microsoft's been a little slow to the game."

Windows accounts for about two-thirds of the market for computer-server operating systems, by shipments, but Microsoft is considered a laggard in virtualisation to allow servers to run Linux or Unix operating systems alongside its own software.

VMware holds more than 70% of the virtualisation market and its sales have doubled year-on-year for the past several quarters.

Microsoft's main weapon against VMware is expected to be a piece of software, code-named Viridian that will be included as a feature of its next generation of Windows Server software. Viridian will act as a "hypervisor" or extra layer that sits between the hardware and the operating system.

Reuters