According to a report in The Wall Street Journal, Microsoft’s Bob Muglia mentions that even facing VMware’s huge headstart Hyper-V is gaining marketshare. Of course, specifics are lacking, but he did let slip that it’s making substantial gains in the SMB market, which is unsurprising considering that the market’s traditionally been one of the company’s strong suits. Looks like a significant number of SMBs haven’t been taking the advice of Dell’s Erik Dithmer’s to skip virtualization tech, to Microsoft’s delight.

He also let slip this very interesting nugget captured by Eric Savitz of Barron’s:

Finding that many companies to do side-by-side adoption of MSFT’s Hyper V and VMware. In side-by-side, we have a 90% win rate, he says. What we are seeing, he says, is doing side-by-side as customers add incremental servers to existing VMware installations.

Muglia also shares an interesting statistic, revealing that roughly 20 percent of all servers shipped are virtualized. And while enterprise adoption skews higher, it still means that the vast majority of servers are likely running underutilized. But Microsoft doesn’t seem to be sweating it. Why? Azure, the software giant’s cloud computing platform.

While betting on the cloud might pay off, it’s not without its risks. In his report on Azure at GigaOM Pro (sub. req’d), Derrick Harris zeroes in on a potential speedbump to widespread adoption: trust. Can Microsoft win over customers in an arena where openness rules? That’s just one of the issues it has to wrestle with.