24/7 Wall Street published an insightful article based on recent interviews they conducted with new Virtual Iron CEO Ed Walsh. A number of great points are made:

Walsh makes the point that his company is the only real obstacle to VMWare moving into an entirely dominant position in the server software business. This could hurt other tech companies in the pocket book.

Another by-product of virtualization is that it allows companies to operate with fewer servers, and more functions may run at the desktop level. Why does the movie-inspired term “Skynet” come to mind where applications are teaming simultaneously on millions of computers rather in servers and mainframes? Over time, perhaps three to five years, this should start to cut into the server revenue at companies like Dell, HP, and IBM if these companies do not fully line up their partnerships upfront. It could also be devastating to operations like Sun Microsystems (NASDAQ:SUNW) because of the reliance on high-end servers.

Read the full article here.