That's the truth. Sun, Xen and even Microsoft are giving VMWare a run for their money nowadays.

There's one interesting thing which has struck me, that I haven't seen any comments on. Namely, that VMWare is stuck competing between Microsoft on the one hand, and several Open Source projects on the other (with some of the Open Source projects having serious financial backing).

Being positioned between Microsoft and Open Source generally hasn't been a good spot to be in (indeed, has anyone succeeded here?). So I have to wonder how VMWare is going to stand up in the future?

I've been a big fan of VMWare in the past, as it has saved my butt more than once. However, now I find myself using Xen more, and seriously considering Sun's offerings.

To VMWare's credit, they have arguably the best person in the world for the job as CEO (at least on paper). Some might remember Paul Maritz as being one of the top people from Microsoft, as well as having led Microsoft's original *NIX strategy (I.e. Xenix). So if there's anyone who can compete there, it is him.

But still, it is not an enviable position to be in, and it makes me wonder how they are going to compete in the long term? Especially since, from a technology basis, the Open Source efforts are arguably better.

Anyone care to add some insightful comments on this? The only way that I can see VMWare winning is if everyone else screws up. While that's possible, there's a lot of money at stake in the Virtualization field, and I think the odds of that happening are low.