Kidaro Buy to Boost Microsoft's Desktop Virtualization Strategy

Published: March 19, 2008

by Alex Woodie

Microsoft last week announced plans to acquire Kidaro, a developer of desktop virtualization software for Windows. The software giant plans to incorporate the Kidaro products into its Desktop Optimization Pack, which is only available to the largest customers with multi-year maintenance contracts.

Kidaro developed an end-to-end suite of desktop virtualization software designed to help organizations manage their VMware or Microsoft desktop virtualization software more effectively. The suite, called the Kidaro Desktop Virtualization Platform, handled everything from allowing administrators to carve out virtual desktop images (which include preconfigured bundles of operating systems and applications) on a Windows server, deploy the desktop images to local or remote desktop computers, hook them into existing Active Directory authentication systems, and then manage those virtual desktops on an ongoing basis. Users access Kidaro "workspaces" in several ways, including via Web-based downloads, USB flash drives, or CDs and DVDs.

By serving virtual desktops from a server, products like Kidaro's help eliminate problems such as application compatibility issues and the need to maintain individual desktop images. Security is also boosted, because data is housed centrally on servers, and users are no longer able to install software or modify their computer's settings.

Microsoft says it plans to incorporate Kidaro's software into future updates of the Windows Desktops Optimization Pack, a free bonus bundle of software available to customers who purchase Software Assurance or other multi-year maintenance contracts.

The software giant sees Kidaro helping in several specific areas, including accelerating Windows Vista migrations, streamlining deployment of Microsoft's Virtual PC software to Windows desktops, providing business continuity by enabling the "rapid reconstitution of corporate desktops," and minimizing tension between IT control departments and users (since users no longer will be able to modify their computers, although this could actually increase tension).

"The acquisition of Kidaro is an important component of our virtualization strategy," says Shanen Boettcher, general manager of Windows product management at Microsoft. "Virtual PCs can help businesses address a number of challenges around application compatibility, mobility, and business continuity. Kidaro's seamless user interface and management capabilities allow enterprises to more easily use and manage Virtual PCs."

Kidaro was founded in 2005, and had its headquarters in Silicon Valley and R&D in Israel. Microsoft is expected to keep three of Kidaro's founders on staff, as well as its R&D facilities in Israel; Microsoft also maintains R&D facilities in that country.

Kidaro is privately held and is backed by Genesis Partners and Storm Ventures. Timing for the close of the acquisition was not provided. Terms of the acquisition were not provided.

Microsoft has made a handful of virtualization-related acquisitions in the past several years. The series started with 2003's acquisition of Connectix, which became the basis for Microsoft's Virtual Server product line. In 2006, the company bought Softricity, which developed desktop application streaming technology, and earlier this year Microsoft bought Calista Technologies, which developed desktop virtualization software that enabled graphics and graphical applications normally only possible in a powerful desktop machine.

"Added together (and reading tea leaves) we're seeing changes to how customers want to adopt/deploy client apps and client computing, and virtualization will play a key role," wrote Patrick O'Rourke, a senior product manager in the Windows Server division, on Microsoft's Virtualization Team Blog.

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