BusinessWeek reports that VMWare has launched a new product aimed at establishing it as a competitor in the cloud computing space.

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Dubbed the Virtual Data Center Operating System (VDC-OS), the software creates a bank of computers, storage devices, and networking equipment that a company can tap at will, as computing needs arise—say, during a December spike in Web traffic for an online retailer.

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VMWare is the leet, so this should be interesting to watch…it should also be interesting as it is being spearheaded by some ex-Microsoft execs…

Interesting times

/nick