Parallels just announced that version 4.0 is coming for Mac. This is probably a make-or-break version for Parallels… it’s the first major version in the wake of VMWare Fusion entering the market.

I own both, and prefer VMWare… it has the edge in speed and overall performance. But, Parallels does have a bit better graphics support. So, there’s no clear winner.

But, really, the thing that will make-or-break Parallels is if they can gain enough competitive advantage to lure existing customers into paying for yet another upgrade. I know that if they can’t show enough new features (and enough of a speed bump)… I’ll probably stay with VMWare.