Microsoft enters virtualization market with Windows Server 2008

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Microsoft Corp released the latest version of its Windows operating system for powerful servers on Wednesday, thrusting itself into the red-hot market for virtualization technology that allows one computer to act like many machines. Windows Server 2008 marks Microsoft’s first major challenge against VMware Inc, the leader in virtualization, by building the technology into its core operating system.

For the time being, Microsoft will ship Windows Server 2008 with a test version of its “Hyper-V” technology, which adds an extra layer of software that sits between the operating system and hardware, but it expects to add the full feature to the software within six months. Along with Windows Server 2008, Microsoft will also take the wraps off the upgrade to its SQL Server database software, due out in the third quarter, after delays pushed back its launch. The company will also highlight the latest version of its developer software, Visual Studio 2008.

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