MSFT: Microsoft Completes Acquisition of Softricity

Microsoft Corp. today announced it has completed the acquisition of Softricity Inc., a leading provider of application virtualization and dynamic streaming technologies. Virtualization is a key technology for reducing the cost and complexity of IT management, and the addition of Softricity is another step in Microsoft’s ongoing strategy to make virtualization more broadly accessible and affordable for customers. Financial terms of the deal were not disclosed.

Originally announced on May 22, the acquisition of Softricity helps Microsoft customers reduce costly application management processes, accelerate application and operating system deployments, and create a foundation for a software services infrastructure. Softricity’s application virtualization technology can help significantly reduce the amount of application compatibility testing typically needed when deploying new applications, upgrades and patches. Applications are served centrally and delivered directly to the user’s desktop in an isolated, virtualized image, minimizing application-related alterations to the operating system and compatibility challenges with other applications.

Combined with Softricity’s software streaming functionality, virtualized applications can be dynamically sent over the network, effectively whenever and wherever a user needs them. The approach creates the option of a centrally managed software service in which applications are available when and where needed and are easily updated.

“With application virtualization and software streaming, Microsoft can now deliver virtualization at the application layer. This is an important part of Microsoft’s virtualization strategy across the platform, operating system, applications and management layers to help customers achieve self-managing dynamic systems,” said Bob Muglia, senior vice president of the Server and Tools Business at Microsoft. “Customers will now have access to new Microsoft® solutions to address application compatibility challenges, ease migration to Windows Vista™ and Windows Server®, code-named ‘Longhorn,’ and dynamically deliver application functionality.”

With the closing of this acquisition, Softricity becomes a wholly owned subsidiary of Microsoft, and integration of Softricity’s technologies into the Microsoft software delivery and engineering processes begins. Microsoft will soon make available the SoftGrid® application virtualization platform at a reduced price in the streamlined form of two core offerings: SoftGrid for Desktops and SoftGrid for Terminal Services. Both products will include the Softricity ZeroTouch™ Web-based access and self-service portal functionality. In addition, Microsoft’s Systems Management Server (SMS) 2003 customers will be able to acquire Softricity’s SMS connector as a free download. Support for existing Softricity customers will continue uninterrupted via existing sales and services teams and partners. Microsoft will provide additional details on the delivery of Softricity offerings that support Windows Vista and Windows Server “Longhorn” at a later date.