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Microsoft plans to acquire San Jose-based Calista Technologies Inc. as part of a larger effort to catch up in a growing area of the corporate technology market.

Calista's specialty is making networks run smoothly for virtualized computer desktops -- situations in which the computing takes place on a remote server, but feels to users as if it's happening on a machine sitting next to their keyboard and screen.

The acquisition is part of a broader attempt by Microsoft to position itself in the market for virtualization -- a broad term for a series of technological tricks that let companies use software and hardware in more flexible ways. Other types of virtualization include the ability to run multiple operating systems on a single computer or computer server.

Microsoft was previously forced to delay its key server-virtualization technology, known as HyperV, from its upcoming Windows Server 2008 release, giving its virtualization rivals, such as VMware Inc., more time to establish themselves. The HyperV technology will now come out within six months of Windows Server 2008's release to market, Microsoft says.

The company declined to say how much it's paying for Calista. The deal is expected to be completed within 45 days. Calista has 35 employees, and its operations will remain in Silicon Valley, Microsoft says.

Microsoft is announcing the Calista acquisition and other virtualization developments in conjunction with a Tuesday conference in Bellevue to be attended by about 400 Microsoft corporate customers that have been using an early HyperV version.

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