VMware’s announcement that it’s buying Thinstall generated a lot of buzz this week. Brian Madden is calling it “a brilliant move” and Randall Kennedy from InfoWorld is wondering if it’s “the ‘hairball’ that chokes VMware?”

All the color commentary aside, it’s hard to think of the combined technologies as revolutionary when they have both been available for some time. It’s also hard not to see the move as validation of the Citrix focus on applications, which Jay Tomlin points out“is what makes IT relevant to business.”

Complete application virtualization requires both server-side and client-side application virtualization as well as application management tools. While this acquisition helps fill part of this gap for VMware, Thinstall only partially addresses the client-side of application virtualization equation.  Presentation Server provides both client-side and server-side application virtualization, which includes both isolation and robust streaming and management.

Certainly, both organizations see virtualization as a growth opportunity and the delivery of virtualized applications to managed and unmanaged desktop devices has to be part of the solution. With a proven solution for more than 70 million users and 98% of the Fortune 500, this plays to Citrix’s strength.