Ubuntu is diverging from its main rivals, Red Hat and Suse Linux, and will use KVM as it's primary virtualization software. You can expect to see KVM in action in Ubuntu's next release, Hardy Heron, due out in April. Canaonical evalutated other virtualization products Xen, Parallels, OpenVZ, KQEMU, and VirtualBox before settling on KVM.

This move gives KVM another notch and it will be interesting to see if any other distributions follow this trend.