What is Desktop Virtualization and how is it different from Server Virtualization like Solaris Zone? Essentially the technology behind them is identical. The difference is in the problem it addresses.
Server Virtualization takes control of a sprawling number of servers that were sucking power and becoming tough to cool. It also addresses some aspect of security and manageability. However, the ultimate goal is about saving money and consolidation.
Traditionally tool like VMware Workstation is only useful for development and testing. Increasingly, enterprise customers are starting to look at slicing and dicing desktop CPUs, just as they are doing with server CPUs, to isolate and secure workloads on single physical systems. This approach to desktop virtualization goes beyond the more common practice, in which applications and workloads are hosted at a remote location for centralized management and remote access.