Yup. Microsoft can afford to eat the loss for as long as it takes to drive VMware into the ground.
Speaking of which, does anyone know how the MS offering compares to VMware. I know their last version was crap compared to either VMWare, xen, or just about anyone else.
I have the same question. I'm looking at virtualizing my office's server and just downloaded (but haven't tried yet) VMWare Server.
Are there any big differences in functionality between the two? What about licensing - IIRC with VMWare Server you need a separate XP license for each virtual machine. MS could really jump ahead if they let you run multiple Virtual PCs with the same XP license. XP Pro licenses are running about $125-$150 on eBay right now and I'd love to save the cost of a couple of them.
VMware actually started giving their virtualization technology away for free first, did they not?
I agree. I tried out the previous version of VirtualPC after using VMWare for a while, and it wasn't very good. I uninstalled it.