Microsoft Announces New Private Cloud Software

Microsoft (NASDAQ:MSFT) vice president Brad Anderson announced  the company was ready to release its private cloud software into the final testing phase.  The product called System Center 2012 will go head to head against a similar product on the market made by VMware Inc. (NYSE:VMW).  Until now VMware has had no competition in the private cloud market, but Microsoft is about to change that.

Bloomberg BusinessWeek quoted Al Gillen, an analyst at IDC research firm, who said, “The stage is being set for a very brutal competition between Microsoft and VMware.  You are going to see a lot of focus around price. Until now, VMware’s functionality has been so much better that they haven’t had to compete on price. That’s going to change.”

Many companies prefer to store and operate program from an Internet-based cloud rather than keep the storage on their own computers taking up valuable storage space.  Having a private cloud rather than using a public one gives the companies further control over their computing data.

The new version of System Center 2012 will be used with Windows and virtualization software.  Anderson said that Microsoft’s private cloud software will be priced lower than VMware’s, but have equivalent features.