On Monday, software giant Microsoft announced that it had loosened some of the licensing terms preventing virtualization of its operating systems. The change allows users of the Home Basic and Home Premium editions of Windows Vista to legally run the operating systems in a virtualized environment such as the ones provided by Parallels Desktop and VMWare Fusion.

Virtualization, a set of technologies that separate software run on a computer from its underlying hardware, allows multiple operating systems to run on a single computer or allow application workloads to be readily shifted between computers to improve hardware utilization. The technology has become more popular on the Mac since Apple's switch to Intel-based processors, which allows current Macs sold to run non-OS X operating systems at native hardware speeds.

According to Macworld, only the US$399 Ultimate edition of Windows Vista could be legally run run in a virtual machine. Yesterday's announcement allows for this to occur with the US$199 Home Basic and US$239 Home Premium editions of Microsoft's operating system.

In June of 2007, Microsoft appeared ready to loosen its licensing restrictions, but reversed its decision and maintained the status quo. Since then, Mac users have been technically able to run Vista Home on a Mac, but only in violation of Microsoft's end-user licensing agreement.

"This move is a good thing for Mac users, since they now have a cost-effective way to access Windows Vista and its massive software library," said Benjamin Rudolph, Director of Corporate Communications for Parallels Desktop publisher SWSoft. "It also makes it even easier for Mac users to keep using OS X, but still integrate with a Windows-centric office. This shows that Microsoft is committed to the virtualization market."

The move is part of a larger effort on Microsoft's behalf to become a leader in virtualization technologies. One of Microsoft's acquisitions, Calista Technologies, was purchased as an investment in a graphics technology that was designed to improve the end-user experience for users looking to access their Windows desktop remotely from a server, according to Microsoft's announcement yesterday.

Microsoft has also extended its partnership with thin-client-maker Citrix Systems in an effort to allow the company's Xen virtualization software to function better with Microsoft's server and desktop platforms.

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