Quoting from Network World:
Microsoft will bring SoftGrid’s capabilities under its Dynamic Systems Initiative (DSI), which is a plan to create a management platform for Windows.
The company has a three-tiered virtualization plan that covers servers, applications and system services. While the server strategy is nearly in full-flight, Microsoft has said nothing about application virtualization until last month and says it won’t dive into system service virtualization, which is designed to help hosted platforms, until after 2007.
Read the whole article at source.