Microsoft & Citrix Accidently Create Virtualization Battleground

Introducing the Citrix Branch Repeater from Microsoft and Citrix. Next... the brouter and the Ethernet vampire tap. I thought I'd slipped into a Star Trek time wrap when I read the news Microsoft and Citrix introduced their Branch Repeater Tuesday... star date, circa 1988? I wonder how much money these to titans spent coming up with that product name? Maybe they could help clean up the Windows Live branding. Back to the point, the Branch Repeater (I still can't type that with a straight face) is an all-in-one branch office box (remember BoB?), resulting from the partnership between Microsoft and Citrix two years ago. I don't know how much security is built into the box but, Branch Repeater combines network services along with basic file and print services, cutting down the number of devices you need at a branch office. And it adds WAN acceleration to the mix, using technology Citrix bought a few years ago.

But the world has changed since Microsoft, Citrix (and Cisco) first laid eyes on the branch office multi-function box opportunity. Enter... virtualization. Since the formation of the Microsoft / Citrix partnership, both companies have entered or stepped up their focus on the virtualization market. Microsoft's moved from Virtual PC to Hyper-V, Windows Server 2008 and all the System Center related virtualization management software. Citrix bought out Xen, bringing a strong virtualization focus to their product mix.

Citrix is positioning Citrix XenApp to stream apps onto the Branch Repeater, and Microsoft is positioning Microsoft Application Virtualization (SoftGrid) and System Center management tools for the platform. Now these guys get to fight against each other for the virtualization business on very box they both created together. How ironic.

And the winner is...? Well, I believe the two highest order factors to determine the winner are, what will it cost, and how will this thing (box, software, virtualization) be managed? In the enterprise, management will be the dominating factor and cost will need to fit into the ROI model. For smaller biz, it's all about low cost and a fast return on investment, and management tools play into whether additional staff or more skills are needed (again, ROI.)

I've never fully appreciated the needs of WAN acceleration, but then again, I don't live in the middle of western Nebraska connected via a 56kb connection either (like my brother, Mike.) Maybe the acceleration will be the deciding factor, but I don't think it's the killer element of the Branch Repeater value proposition. Cost savings through consolidation and management costs are. In smaller biz, Citrix could have the advantage. In large enterprises, I'd say Microsoft has the edge.

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