Microsoft made its Virtual Server technology free to download in April, so it was almost inevitable that the PC version of the software, which allows multiple operating systems to run a single PC, would also be made free.

With the release of Virtual PC 2004 Service Pack 1 the company has done just that, and it is also promising that the forthcoming Virtual PC 2007 will also be available as a free download.

Virtual PC 2007 will introduce support for the forthcoming Windows Vista, and Microsoft also told attendees at its Worldwide Partner Conference this week that Vista Enterprise licensees will be able to install up to four versions of the operating system on a single PC.

According to a blog post from Microsoft software development engineer in test, Mike Kolitz, that capability will be available to users whether they are running Microsoft’s Virtual PC, or another rival virtualization technology.

Vista Enterprise is one of six planned versions of Vista and will come with in-built virtualization capabilities enabling Vista to run older versions of Windows and Unix software in emulation mode.

Microsoft acquired Virtual PC and what eventually became Virtual Server when it purchased Connectix Inc in early 2003. Making Virtual PC available free of charge could have a swift knock-on effect on Microsoft’s competitors, which include Parallels Inc, EMC Corp’s VMware Inc, and XenSource Inc.

VMware already offers its VMware Player free, and is pushing forward with up-market manageability features via the ACE Assured Computing Environment, while Parallels currently charges $50 for its Workstation product.