With the launch of Parallels Server Bare Metal, Parallels is expanding its value proposition in the crowded virtualization marketplace. But how is its approach different from other virtualization vendors such as Citrix, Microsoft and VMware?

First, Parallels offers a differentiated approach to virtualization that includes both hardware virtualization with Parallels Server Bare Metal and OS virtualization with Parallels Virtuozzo Containers. When the OS environment is heterogeneous, Parallels Server Bare Metal provides flexibility for hosting workloads with different operating systems on the same physical server. This approach is similar to Citrix XenServer, Microsoft Hyper-V, Oracle VM and VMware vSphere. However when the OS environment is homogeneous, Parallels provides capabilities to consolidate workloads with much lower virtualization overhead and much higher consolidation ratios. This is particularly useful for desktop virtualization.

Second, Parallels is clearly positioning itself for cloud enablement. Changes in messaging from "Automation and virtualization leader" to "Cloud enablement leader" clearly speak to that. And while other vendors are getting ready for cloud adoption, Parallels is already there with major market and mind share from service providers. Starting from its position of strength, Parallels can now go to all its partners using Parallels Virtuozzo Containers and help them expand their value proposition to customers with the addition of Parallels Server Bare Metal.

Finally, Parallels provides Parallels Virtual Automation for comprehensive management of both physical and virtual environments. Because of its strong expertise in enabling services providers, these capabilities push self-service and automation to levels that dramatically reduce the cost of implementing and managing virtual infrastructure.

In the last six years, leading vendors made significant investments to capitalize on opportunities presented by virtualization technologies:

• EMC acquired VMware in 2003 for $635 million
• Citrix acquired XenSource in 2007 for $500 million
• Red Hat acquired Qumranet in 2008 for $107 million
• Oracle acquired Virtual Iron in 2009 and is finalizing acquisition of Sun Microsystems

Now the big question is, who else wants to have a strong play in the virtualization and the cloud space?

Regardless of what happens, Lanamark Suite will enable the IT channel to design and deliver desktop and server virtualization solutions across all the leading virtualization platforms.

Lanamark today announced a partnership with Avnet Technology Solutions, a leading distributor of enterprise computing products, software and services with locations in more than 30 countries. The partnership will enable value-added resellers, system integrators and system builders working with Avnet Technology Solutions to use Lanamark Suite to accelerate design and delivery of desktop virtualisation, server virtualisation and storage solutions to enterprises in EMEA.

The partnership between Avnet Technology Solutions and Lanamark allows IT solution providers to offer real options to customers across virtualization and hardware platforms, rather than limiting them to a fixed combination. Now VARs, system integrators and consultants can mix-and-match:

• Software from vendors such as Citrix, Microsoft, Oracle, Parallels, Quest and VMware
• Hardware from vendors such as EMC, HP, Hitachi, IBM, Fujitsu, IGEL, NetApp, Sun and Wyse

By doing so, solution providers can build solutions that are best for their customers and then purchase all the key components of these solutions from Avnet, all while shortening sales cycles and maintaining control of sales and services opportunities.

Alessandro Perilli wrote an interesting blog post about how Novell is moving PlateSpin Recon development to India. The PlateSpin Recon development team working on the product in Toronto, Canada is very talented and this change is not likely to be well-received by members of this team. There is also a question of how the product will be managed and how Novell is planning to channel feedback from customers and partners to the product development team.

That said, a number of virtualization companies have built phenomenal teams and products with development centers offshore. Lanamark with design and development teams in Latvia, Romania and Ukraine, Parallels with development centers in Eastern Europe and VMLogix with a stellar team in Bangalore, India are good examples of such companies.

In a move that further solidifies its investment in virtualization and cloud computing, Cisco Systems announced an $11 million investment in Parallels through Almaz Capital Partners. The investment is noteworthy for several reasons:

• In 2007, Cisco purchased $150 million of VMware Class A common shares. Parallels is the second virtualization company to receive an investment from Cisco.
• Through its investment, Almaz Capital Partners acquired a 5% stake from its previous owners, Insight Venture Partners.
• Unlike VMware which is owned by EMC, Parallels may be a more viable acquisition for Cisco down the road, especially if the networking giant decides to make virtualization a core part of its Cisco Unified Computing System.
• Parallels is about to launch its bare-metal hypervisor with integrated management and automation.

Could Cisco be working with Parallels to incorporate virtualization, management and automation capabilities into the Cisco Unified Computing System? Is $11 million only the beginning of Cisco's investment in Parallels as it plans to invest $100 million in growth stage Russian software and IT companies over the next year?

Simon Crosby, CTO at Citrix Systems recently responded to our blog post on why there may be great synergies between Parallels and Symantec by writing his own post entitled The Strategic Role of the "Could Be" Vendors. Despite our different views on the topic, Citrix and Lanamark have a great relationship and I correspond with Simon regularly. Citrix has also been working closely with Lanamark as a design partner on the Server Virtualization Design Module and Lanamark provides first-class support for Citrix XenServer in Lanamark Suite.

That said, Simon's blog post merits a response:

1. Lanamark hasn't "just signed a deal with Symantec and/or Parallels". We have a great relationship with Parallels and actively work with Parallels partners world-wide. Same goes for Citrix, Microsoft, Sun Microsystems and VMware as well as their channel partners. In fact Citrix XenServer and VMware ESX were the first two platforms supported by Lanamark Suite without any "deals" with Citrix or VMware.

2. As a company that focuses on enabling solution providers to deliver virtualization assessment, planning and design services we know a thing or two about virtualization platforms. If Parallels delivers what it promises, then it will have a more versatile and robust virtualization solution that offers high consolidation ratios, automation and performance.

3. If Citrix did not acquire XenSource then it would have been in a similar position Symantec is in today, simply partnering with other platform vendors such as Microsoft. But given its robust portfolio of virtualization, backup, DR, security and other systems management soluions, Symantec has a lot of potential to be a leader in the virtualization space not just a "could be" vendor.

4. Parallels owns significantly more than a "microslice" of the web hosting market and has healthy growth in enterprise deployments.

5. A virtualization platform is of marginal value to an enterprise without proper management and automation tools. So in evaluating whether a solution is free, it's important to consider the TCO of all components in a solution, including automation and management applications that are needed to make the most of the virtualization platform. Hence while Citrix XenServer is free, the reality is that the complete solution is not, unless Citrix of course starts to give away management applications in Citrix Essentials for free as well.