Hyper-V, released in June, is included in most versions of Windows Server 2008. But the company has been charging US$28 for a stand-alone version that could be downloaded from Microsoft's Web site.
The new version of Hyper-V will also have a Live Migration feature that lets administrators move applications as they're running to other servers. The latest Hyper-V will be offered as a download on Microsoft's Web site.
Microsoft also plans to release within the next month System Center Virtual Machine Manager 2008, which has been available as a beta since April. The software is used for provisioning and managing virtual machines, among other tasks. It's compatible with Windows Server 2008 Hyper-V, Microsoft Virtual Server 2005 R2, Microsoft Hyper-V Server 2008 or VMware Virtual Infrastructure 3, the company said.
Microsoft has been scrambling to create a full package of virtualization tools and technology to compete with companies such as VMware. IT administrators see virtualization as a way to get more performance from their hardware, as it allows multiple operating systems to run on one physical server.
Last week, Microsoft released App-V 4.5, which allows applications to be streamed from a central servers to PCs or devices.
Microsoft plans to have a press event later on Monday on the latest announcements.