In a deal that proves that everyone can benefit from virtualization, Lenovo has adopted the VMware VI3 suite across its server platforms, the vast majority of which are destined for the Chinese market.

The deal calls for Lenovo to distribute VI3 as a standalone system and as a preinstalled stack on Lenovo hardware. The company already has a similar deal with Citrix covering the XenServer suite.

For VMware, the deal marks the continued expansion of its virtualization technology outside North America just as the economy heads into a slowdown. The company has eyed both China and India as major growth markets over the next decade.

Still, the deal could have a ripple effect to other areas of the globe if Lenovo follows through on plans to begin selling one- and two-socket servers outside of China, probably sometime in the 2009 timeframe. The company has teamed up with IBM for underlying technologies on new servers for small to mid-sized enterprises.