While this news is about 6 months old it snuck by me somehow.
If you're not already aware, VMware's ESX Server is a small stable environment that is essentially a tiny linux distro, a few drivers and hypervisor in roughly 32MB of space. This leaves all of the remaining resource to be free for the guest operating systems. While this alone is exciting Cisco is rumored to be releasing a virtual switch and other technologies to combine with VMware.
http://www.virtualization.info/2007/07/cisco-to-announce-first-3rd-party.html
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