Virtual Server is Windows' 2003-based virtualisation software that allows IT departments to run multiple operating systems on the same piece of server hardware.
Microsoft said the technology could be used in situations where a user needed to run legacy applications in their native software environment without rewriting application code, reconfiguring networks or retraining end-users.
According to Microsoft, by running legacy NT4.0 applications on Virtual Server, users would have more time to refresh out-of-warranty infrastructure systems before upgrading or rewriting legacy applications.
Microsoft said the software could be used for consolidating multiple server workloads and could run mirrored systems for disaster recovery cost effectively.
However, Meta analyst Philip Dawson warned in a paper published in June that the cost of a virtualisation software licence might be more than that of adding a physical blade server, as server prices continue to tumble.