In short, no there wasn't a big virtualization story in 2007. In my view, there were many.
The market for virtualization technology is dynamic and growing. I've been watching well over 100 different companies or communities that have been trying to push things forward.
Interesting announcements appeared concerning every layer of virtualization technology. It's hard to pick out a single announcement I've seen go by and just know that there will be a "yes" answer to the question, will this announcement will be seen as a critical step five years from now?
In any case, I'm looking forward to the exciting events that I just know will happen in 2008.
Have a great New Year!