Microsoft’s purchase of SoftGrid has enabled them to release an application virtualization product, called App-V.
What is application virtualization? That is a question for another time.
How does MS do application virtualization? At it’s simplest (and it can get quite complicated) it is a sandbox for an application to run in. The sandbox includes its own registry, folders and all the files and DLLs the application needs.
How do you do that? On computer designated for this roll, you monitor the installation of the application and then monitor the start up of the application and doing some basic tasks inside the app. After monitoring all these steps the App-V software creates a package that you can use to run the application as if it was installed locally. Because the package contains all the registry and files it needs you can run this on any Windows (XP SP3 or newer) machine.
App-V is a component of the MDOP (Microsoft Desktop Optimization Pack), additional info can be found here.
Why Would I want to virtualize an application? I’ll address that another time too.