billstewart writes "The Wall Street Journal reports that Microsoft will be announcing a virtualization strategy on Tuesday. Of course there's plenty of focus on the competition with VMware, including the obligatory reference to Microsoft's entry into the browser wars prior to cutting off Netscape's air supply. The pieces of the picture will include: an alliance with Citrix Systems, owners of XenSource; acquisition of privately held Calista Technologies of San Jose, which has software that speeds up the performance of applications running in a virtualized environment; and lower price for Windows Vista used on virtualized computers. Microsoft also reversed its earlier position and will now allow the Home Basic and Home Premium versions of Vista to run under virtualization. The company confirmed its plans to deliver its Hyper-V hypervisor within six months of the launch of Windows Server 2008 (betas available now), which is expected this quarter."