Microsoft (NASDAQ:MSFT) and Citrix Systems (NASDAQ:CTXS)  have expanded their alliance to market joint virtualization solutions with Windows Server 2008 to help businesses achieve a flexible and dynamic client computing infrastructure.

The two companies plan to co-market new offerings with the next generation of Citrix Presentation Server and the Citrix XenDesktop products, both based on Windows Server 2008 and Windows Optimized Desktop solutions, and managed by Microsoft System Center. Citrix Presentation Server along with Windows Server 2008 enables customers to deliver remote Windows-based applications at a low cost and with high performance for users. The next generation of Citrix Presentation Server will support and extend Windows Server 2008.

"Customers should find that our virtualization products together provide one of the best ways to virtualize Windows apps, desktops and servers," Mark Templeton, CEO of Citrix Systems, said in a statement. "By leveraging our strength in desktop virtualization in support of the Windows Server 2008 platform and System Center, our development efforts enable businesses to deliver the right desktop experience to the right user at the right time for the increasingly diverse set of user needs."