WSJ.com - Microsoft Acquires Software, Patents for 'Virtual Machine'

WSJ.com - Microsoft Acquires Software, Patents for 'Virtual Machine' "Microsoft Corp., Redmond, Wash., said Wednesday it has bought software and patents for so-called "virtual machine" technology from privately held Connectix Corp., of San Mateo, Calif., for an undisclosed sum.
The deal, which closed earlier this week, covers technology developed by Connectix (www.connectix.com) that allows computers running one operating system to run other operating systems and their associated programs -- all on the same machine. For example, one version of Connectix's software allows Macintosh computer users to run applications built for Windows operating systems.
About 30 of Connectix's 100 employees will also join Microsoft, said Kurt Schmucker, Connectix vice president for Macintosh products.
Microsoft acquired three versions of Connectix's software: one for Macintosh, one for Windows and a test version for computer servers.
...
Connectix competitor VMware Inc. (www.vmware.com), based in Palo Alto, Calif., said it, too, had been in talks with Microsoft over a possible deal, but declined to give details due to a nondisclosure agreement, said Diane Greene, VMware's chief executive officer. The 300-employee company, which has about 5,000 customers, is concerned about Microsoft's entry into its market, Ms. Greene said."