ServerWatch has an article up -- Vendors Claim Some Turf -- that discusses current server sales, virtualization and what this all means. They talk a bit about how hardware vendors and virtualization vendors are working together:

Last week, for example, Virtual Iron and Dell revealed details of a newly forged reseller agreement. A small step for both players, perhaps, but one that shouldn't be overlooked.

For Virtual Iron, it's yet another inch forward toward recognition that its product is ready for the big leagues. For Dell, it's confirmation of its renewed commitment to meeting enterprise's needs and further proof that the embattled vendor is getting with the times.

Dell will use Virtual Iron's distribution channel to resell the Virtual Iron's Xen-based virtualization server to end users as part of its portfolio of server virtualization and storage offerings.