The company's software is designed to help network administrators manage access privileges and file sharing between groups of computers.
DesktopStandard's products work with Microsoft Group Policy, a component of Windows 2000, XP and Server 2003, that allows administrators to control multiple systems with one set of parameters.
The DesktopStandard product and its developers will eventually be absorbed by Microsoft, according to a statement on the company's website.
Microsoft said that it hopes the integration will make it easier for administrators to install and manage Group Policy, as well as back-up important data.
"DesktopStandard products are already seamlessly integrated with Group Policy and are complementary to Microsoft technology. This acquisition enhances our ability to meet customers' needs," said Larry Orecklin, general manager of Microsoft's Windows Enterprise Management division.
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