The recent activity and interest around virtualization including the VMware IPO and Citrix acquisition of XenSource is indicative of the importance of virtualization as the leading technology of the 21st century.

In a week where the market was headed decidedly south, the VMware IPO emerged as a star. The timing of the Citrix acquisition of XenSource was impeccable. XenSource is an open source company specializing in hypervisors, technology that allows multiple operating systems to simultaneously run on a single host computer. These two events showcase enterprise interest in virtualization.

What does this really mean? It means the way Microsoft has shaped the market with the operating system, Windows, as the building block is about to undergo a transformation. The transformation means that technology can be built to run on any device, duplicated elsewhere and keep track of where and how it is running.

Think about the possibilities this can create. Software will not be tied to an operating system, rather it will be a malleable environment capable of running where the user wants it to.

Microsoft is aware of this intention to dismantle and prove the operating system, its franchise business of Windows, irrelevant. Microsoft certainly has a significant territory to protect. The software giant made public statements regarding its intent to deliver virtualization, of course as part of the operating system. However, their timeline has been delayed.

Virtualization technology, specifically, VMware has been the only company to seriously threaten Microsoft's franchise business. Citrix, with its XenSource acquisition, is now entering that elite group along with VMware.