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Microsoft To Buy Desktop Virtualization Startup

By Kevin McLaughlin, CRN
March 12, 2008    5:50 PM ET

Microsoft on Wednesday added another key technology nugget to its Microsoft Desktop Optimization Pack (MDOP) by announcing plans to acquire Kidaro, a Redwood City, Calif.-based purveyor of enterprise-focused security and desktop virtualization solutions. Financial details weren't disclosed.

Kidaro's technology portfolio includes data leak prevention and encryption solutions as well as virtual desktop deployment, laptop management, and desktop disaster recovery tools. For companies that are undergoing a hardware refresh, Kidaro brings the ability to deploy virtual desktops via a USB drive.

MDOP, a subscription offering that's only available Microsoft's Software Assurance maintenance contract customers, weaves together application virtualization, inventory services, group policy management and recovery, and System Center desktop error monitoring.

Microsoft has been trying to add more value to Software Assurance, a volume licensing program that gives companies the right to upgrade to new software versions released during the term of the contract with Microsoft, and to spread payments over a three-year period. Microsoft keeps adding pieces to the MDOP offering to entice customers to buy Software Assurance, but so far MDOP hasn't gained much traction in the channel, according to some solution providers.

Still, Rand Morimoto, president of Convergent Computing, Oakland, Calif., believes the Kidaro acquisition will fill a gap in Microsoft's current desktop virtualization offering and make MDOP more attractive to customers.

"MDOP has been pretty good [for the channel], and each of the components themselves has great value, but Microsoft sees the need to complement them with even more content," Morimoto said.

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