But he batted down any suggestion that Intel's Red Hat investment was a warning to Microsoft, which wants to win corporate hearts and wallets with its NT operating system running on Intel-based server machines.

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It runs on older Windows XP machines and a Windows 2003 server.

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Examining any PC or server hosted on the machine, it would appear that the machines were hosted normally by a hypervisor, but, she argues, it would be tough to detect another hidden hypervisor intercepting data or manipulating the virtualized computers.

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Virtualization turns each of those underperforming machines into pieces of software and packs them together on a single physical server that runs continuously.

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Both the VMWare Server and Microsoft's Virtual PC 2007 are ideal for installing virtual machines on an Intel- or AMD-based PC.

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He describes a server upgrade on one of Sun's own data centers last June that turned 22 outmoded servers into 11 modern machines, whose processors run at a slower speed but are capable of far more simultaneous tasks.

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