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Intel has a well established rhythm of technology innovation - and a lot of really smart architects who know a thing or two about cpu design - but we get innovative ideas from the outside, too. Over the years of the VMware alliance, Intel has received many requests for small changes in CPU circuitry...changes that would make virtualizing the CPU easier, more efficient, or add capability. A whole raft of hardware optimizations for virtualization were included in the Nehalem architecture. As Intel started to deliver early silicon for Xeon 5500 based platforms, Intel software engineers worked closely with VMware engineers to optimize vSphere.
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