Optimizied HyperVisors
So basically it's a hypervisor optimized for a limited set of workloads? There's a scale of these from Containers (one OS shared) though Shared kernel, to general purpose VMs. And these solutions will work well for specific scenarios.
Microsoft and VMware are both managing containers and VMs already, so if there's a gain for an intermediate solution, they'll manage those too - so can't see this idea being the death of either company! Azure specifically will just have a tick box for them...
Biting the hand that feeds IT
