Two months ago, Microsoft denied reports that the next generation of its Windows Server virtualization software, code-named Viridian, was behind schedule. Last month, Microsoft pushed back the first beta for Viridian from the first half of this year to the second half. Now, it's cutting out some features altogether. Not a great storyline.The cuts include the elimination of the ability to move virtual machines between servers while they are still running, getting rid of the ability to add resources to virtual servers on the fly, and cutting the support for number of processing cores from 32 to 16, according to a blog post by Mike Neil, Microsoft's general manager for virtualization strategy. These were all features Microsoft has highlighted in the past.

Needless to say, the response in the Microsoft blogosphere hasn't been exactly pleasant. Steven Bink of bink.nu: "Microsoft does it again," he writes. "They let us wait and then just drops (sic) the cool stuff for a 'future release.'" Josh Phillips at Windows Connected: "They certainly aren't keeping up with anyone." Robert McLaws at Windows Now: "Microsoft's virtualization strategy is doomed to fail."

That last comment probably won't come true, but Microsoft will likely continue to slip in the minds of many. While current virtualization market-leader VMWare has been sending out PR e-mails, trying to hype its virtualization products during Microsoft's WinHEC conference next week, it now looks like they're responding to a little bit of nothing. As Phillips says at Windows Connected, "Microsoft sure isn't gonna put them out of business anytime soon." With delays and cuts like these, that might be an understatement.