People laughed when Apple postponed the next version of OS X because Apple had allocated many of the same resources to getting the iPhone out. It will be interesting to see how many people laugh when they see how few features Viridian (Windows Server virtualization), Microsoft's answer to VMware's and Xen's virtualization products, will have when it is released later this year.
In Microsoft's Viridian features update, there is lots of breathless touting of features that VMWare has had for a long time. But then there's the kicker: they are "postponing... to a future release of Windows Server virtualization" two features that many / most IT departments who are using VMWare or Xen have come reliant on, namely live migration and dynamic adding of server resources like storage, networking, and memory.
It is sad that Microsoft thinks that any significant percentage of their customer base will want to use technology that is far inferior to Microsoft's competition, particularly when that inferiority comes at the expense of runtime flexibility, one of the main features for virtualization. Mike Neil, the general manager for Microsoft's virtualization strategy, says "I believe Windows Server virtualization will be appealing for the core virtualization scenarios, from the mid-market and large organizations to the enterprise. Especially for mid-market customers, they have the greatest need for a virtualization solution that is reliable, offers integrated management tools, has world class technical support, and allows employees and partners to leverage their existing skill sets." Blah blah blah. It doesn't have the best features of its competitors, and there is not specific timetable for those features to be added.
I'm sure that some of Microsoft customers will use Windows Server virtualization, but I'm also quite sure that the IT staff people maintaining those systems will be tearing their hair out when they want to do something as simple as adding a virtual hard drive or virtual RAM to a running system without rebooting the virtual server. When they realize that they can't expand their hardware easily by adding additional physical computers when needed, the screaming will be even louder.