Microsoft Application Virtualization adds a new dimension to application management by abstracting the application and its components from the operating system, dynamically delivering them, and running them in a virtualized environment. This results in significantly reduced application conflicts and regression testing, and accelerates the time to bring an application from purchase to production.
However, Microsoft Application Virtualization is only focused on virtualized applications and, therefore, only covers part of the overall desktop management picture. Configuration Manager 2007 provides a comprehensive solution for change and configuration management for the Microsoft platform, and is the most widely used tool for deploying and managing applications and operating systems on Windows desktops and servers. When combined with the MSI Utility for Microsoft Application Virtualization solution accelerator, IT administrators can now gain the benefits of application virtualization within the Configuration Manager 2007 management infrastructure.
Benefits of the MSI Utility for Microsoft Application Virtualization solution accelerator:

Creates an MSI wrapper as control point for virtual applications
Interoperability with System Center Configuration Manager 2007
System Center Virtual Application Server is not required
Virtual applications can be inventoried via Add/Remove Program scanning
Third-party ESD systems may use the solution accelerator to control virtual applications
Stand-alone mode virtual applications may be delivered to users via removable media or from a file share
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