Not as good as it used to be since 2001
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For no-budget virtualisation (hobbyist or small office) the free ESXi is by far the best I've used. And the upgrade path and options available for data center use are absolutely phenomenal - years ahead of Microsoft.
With appropriate hardware you can run Linux virtualisation as host at no charge. Pick any guest, free or not.
http://www.linux-kvm.org/
In five years VMWare will no doubt be heading a call for an anti-trust investigation against Microsoft for destroying them.
They gave M$ and Citrix 10x10 booths and then don't let them demo their products. Look bloody scared.
Given Microsoft's history of security problems, rushed or otherwise unfinished product releases and poor customer support I don't think thats the case.
Sure browsers get hacked more than servers but which one matter more in the long run. A browser dies, 1 person can't surf the web, a server dies and corporate information can be stolen, a company website goes down losing them sales, often it stops a lot of people who rely on the system for their daily jobs from working as well.
Its not surprising that they have banned their competition from appearing at their expo. It would be stupid not to really, the microsoft product isn't that far behind them and any sensible business would do the same. Nothing to do with them been worried, just no point them giving any sales away they don't have to.
I would say banning competition at VMWorld this year - now that Microsoft has a competing product - shows they are very concerned about Microsoft.
And I think it's just PR spin about windows and it's security vulnerabilities. I'm not convinced server 2008 is any less secure than any other OS out there. Not to mention most vulnerable applications aren't run on servers (browsers, quicktime, flash, porn ... ) and I would bet most companies with servers also have a corporate firewall.
Anybody know what vmware's long term support is like? Do they support their products 10 years later with security updates and whatnot? They might, but we replace our servers more often than that.