HUNTSVILLE, Ala.-Redstone FCU is not regretting its decision to convert 75% of its personal computers to a virtual desktop solution, despite the fact the company that makes the hardware connecting workstations to the main server has shut down.

But some analysts suggest there is reason to begin making backup plans. Pano Logic, Redwood City, Calif., the once-promising company at the forefront of the desktop virtualization movement, has gone out of business. Pano Logic offered a small piece of hardware that connects an end user's monitor and peripherals to a network, eliminating the need for a CPU, and more importantly, tech support for desktop computers. The computing resources are drawn from a centralized server.

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