Microsoft is trying to restrict customers flexibility and freedom to choose virtualization software by limiting who can run their software and how they can run it. Microsoft is leveraging its ownership of the market leading operating system and numerous applications that are market leaders in their respective categories (Exchange, SQL Server, Active Directory) to drive customers to use Microsoft virtualization products. Their tactics are focused on software licensing and distribution terms (for SQL Server, Exchange, Windows Server, Vista) and through the APIs and formats for virtualized Windows.
In particular, Microsoft does not have key virtual infrastructure capabilities (like VMotion), and they are making those either illegal or expensive for customers; Microsoft doesn't have virtual desktop offerings, so they are denying it to customers; and Microsoft is moving to control this new layer that sits on the hardware by forcing their specifications and APIs on the industry. Included below in this document are explanations with supporting details of some of these specific areas.
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Microsoft needs to fundamentally accommodate market choice and interoperability. Customers require freedom of choice to implement both Microsoft and non-Microsoft applications running on Windows with any chosen system virtualization layer. Customers do not benefit from being forced into a homogenous virtualization/OS/application stack.
