The Connectix software also allows Microsoft to counter a marketing push from rivals such as database maker Oracle, which claims that their software can help companies save money through consolidation of servers. Oracle is specifically targeting Microsoft customers with multiple servers running Microsoft's Exchange email server. "Microsoft is taking a lot of flak from Oracle through ads that say they can consolidate Exchange better than Microsoft can. Microsoft looks at Connectix as a way to run more Exchange Servers on a single Window server," DeMichillie said. Sun, IBM and other server makers are also pushing the idea of virtual servers, which can save budget-conscious IT departments money by grouping multiple software applications onto a single server. Instead of maintaining multiple, specialised servers and databases for each business function -- customer service, purchasing, human resources -- companies can spread those applications across any available server to wring out the maximum return on investment. Analysts expect Microsoft to include the Connectix server software in a future release of Windows, greatly increasing the chances that companies already licensing Windows would use that software instead of a competitor's product. With the Connectix deal, Microsoft can now claim that companies can consolidate older Novell Netware and IBM OS/2-based servers onto a single Windows Server system. The software also works with Linux -- which is increasingly seen as a serious threat to Microsoft's server operating system business. Conceivably, Windows Server users could also consolidate multiple Linux servers using the Connectix software. That possibility, while potentially appealing to customers, goes against Microsoft's policy of distancing itself from Linux and open source, Gillen said. Still, the company may have no choice but to continue Connectix Linux support, he said. "Microsoft has said there are no plans to change that, and Linux support will stay (in the product). If they take it out, it will diminish the appeal of the product to customers, and that will open up the market to VMware (a Connectix rival) or others to displace Microsoft in this area. "So they (Microsoft) really don't have any choice in the matter, despite how it goes against corporate policy, if they expect this product to be successful in its own right," Gillen said. Jim Hebert, general manager of Microsoft's enterprise server business, would not elaborate on the company's plans for Linux support on Connectix software. "Microsoft has made no changes to which operating systems are supported at this time. Microsoft will carefully evaluate market opportunity and customer requirements before making any product or support decisions," Hebert said. News.com's Joe Wilcox contributed to this report.
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