Microsoft to acquire Kidaro

Microsoft Corp. is planning to buy Redwood City, Calif.-based Kidaro, which makes desktop virtualization products.

Redmond, Wash.-based Microsoft plans to combine Kidaro’s technology with its Desktop Optimization Pack for Software Assurance. Microsoft says this would let users reduce compatibility problems when migrating to the Vista operating system, and help companies recover from disasters.

Kidaro says its enterprise desktop virtualization platform runs on existing PC hardware and has encryption and data leakage prevention capability. It also lets IT administrators manage one virtual image instead of a unique image for every PC.

Microsoft says the acquisition is an important part of its virtualization strategy.