Looks like Microsoft is expanding their desktop virtualization campaign with acquisition of Kidaro:
Microsoft Corp. today announced its intended acquisition of Kidaro, a leading provider of desktop virtualization solutions for enterprises. In combining Kidaro's virtualization technology with its suite of desktop management tools, known as the Microsoft Desktop Optimization Pack for Software Assurance, Microsoft will enable IT professionals to optimize their desktop infrastructure by providing management capabilities for Virtual PCs, streamlining deployments and easing application compatibility issues.
Windows Virtualization Team blog also confirms:
the three founders of Kidaro will be joining Microsoft and play similar roles here, and that the plan is to keep Kidaro's R&D team in Israel.