Microsoft Acquires Connectix Virtual Machine Technology
Feb. 19, 2003
Move Eases Consolidation and Migration to New Operating Systems for Customers

REDMOND, Wash., Feb. 19, 2003 — Microsoft Corp. today announced it has acquired the virtual machine solutions of privately held Connectix Corp., a leading provider of virtualization software for Windows® and Macintosh-based computing. By deploying supportable virtualization technology from Microsoft, customers can easily migrate to next-generation operating system platforms while leveraging investments in their existing applications. In addition, Microsoft's virtual machine solutions will enable companies to consolidate server resources, thereby reducing hardware capital expenditures and operating costs.

"Our customers told us they wanted a best-of-breed virtual machine solution that enables them to run their legacy Windows applications, even as they migrate to more modern operating system technology," said Bill Veghte, corporate vice president of the Windows Server Group at Microsoft. "With this acquisition, we are committed to delivering this solution for our customers and providing the support they need both today and in the future."

"This agreement will enable advances in virtual machine technology and applications through expanded resources for research, development, professional support and services," said Roy K. McDonald, president and CEO of Connectix. "We look forward to working with Microsoft to provide a seamless product and support transition for our current customers and believe that Microsoft will produce the very best-in-class virtualization solutions on Windows and Macintosh platforms for a long time to come."

Virtual Machine Solutions

Virtual PC for Mac provides seamless integration of Windows on the Macintosh platform, enabling Mac OS customers to run Windows-based applications, access PC networks, use Windows-only Internet applications and share files with PC-based colleagues. Virtual PC for Mac will join the Macintosh Business Unit's mix of award-winning Mac products, such as Office v. X, Entourage (TM) X and Internet Explorer for Mac.

"Adding Virtual PC to its product portfolio is yet another example of Microsoft's continued commitment to the Mac platform," said Ron Okamoto, vice president of Worldwide Developer Relations at Apple Computer Inc. "For years, Virtual PC has helped people who want to own a Mac but need to run legacy PC applications. We're glad to see Virtual PC go into such good hands."

Virtual PC for Windows provides Windows desktop customers with an additional tool for migrating to Windows XP or to Windows 2000 Professional, supports legacy applications, and enables a range of other uses for application development, call centers, technical support, education and training.

Virtual Server addresses customer demand for an application migration solution based on virtualization and supported by Microsoft. In addition, it provides significant cost efficiencies by consolidating multiple Windows NT® 4.0 servers and their applications onto a single Windows Server system. The Virtual Server product is undergoing beta testing and is expected to be released before the end of 2003.

"Use of Virtual PC for Windows in the past year has resulted in more than $2 million in savings for our company, and we hope to save even more with Virtual Server playing a key role in our server consolidation efforts," said Randy Robinson, vice president of Information Technology at UnumProvident. "We are very pleased that Microsoft is bringing these solutions on board, and we look forward to benefiting from the support that Microsoft will provide for such critical legacy migration and server consolidation technologies."

Product and Support Availability

The transaction was completed as of Feb. 18, 2003; specific terms of the agreement were not disclosed. Microsoft will continue development of virtual machine solutions from Connectix and will integrate them into the Windows and Mac product portfolios. During the transition period, Connectix will continue to sell and support Virtual PC for Windows, Virtual PC for Mac and Virtual PC for OS/2 products through its current distribution channel partners. Virtual Server will be available as a preview release on the Microsoft® Web site April 15.

Additional product and technology information can be found at the following sites: Virtual PC for Mac, http://www.microsoft.com/mac/; Virtual PC for Windows, http://www.microsoft.com/windowsxp/virtualpc/; and Virtual Server, http://www.microsoft.com/windowsserver2003/evaluation/news/bulletins/vmnews.mspx.

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Supporting Industry Quotes

"We fully support Microsoft's efforts to drive a standards-based approach to virtualization, and together will collaborate on integrated hardware and software solutions that help enterprises consolidate network resources, improve control and optimize IT investments. Companies worldwide are feeling the pressure of smaller IT budgets and increasingly rely on standards-based solutions from trusted partners to help lower costs and improve IT infrastructure."

  • Linda Hargrove
    Vice President, Worldwide Enterprise Systems Marketing and Product Management
    Dell Computer Corp.

"HP is very excited about Microsoft's acquisition of Connectix. Many of our Windows Server customers require virtual partitioning. Connectix's Virtual Server technologies running on HP's industry-leading ProLiant servers will be a great solution for our customers."

  • Rick Becker
    Vice President and Software CTO
    HP Industry Standard Servers

"IBM has a long history of leveraging technologies like virtualization to help customers reduce their cost of ownership. Server consolidation has been one of the key drivers behind the success of the x440 product. Our relationship with Microsoft has always been important, and we will continue working together in offering valuable solutions for enterprise customers that leverage both the IBM x440 and Windows Server operating systems."

  • Deepak Advani
    Vice President of xSeries Servers
    IBM Corp.

"The ability to partition has always been a vital ES7000 capability, especially for customers seeking to eliminate server sprawl by consolidating onto fewer platforms. Virtual machine technology is an excellent complement to the Unisys consolidation offering, adding an additional degree of partitioning granularity. We are pleased that Microsoft is incorporating this capability into its operating system, and we look forward to leveraging it to create additional value for our consolidation clients."

  • Wayne Carpenter
    Director
    Unisys Server Consolidation Programs

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