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Virtualization Revenues to Increase 43% in 2009

Cost reduction, resource utilization and management advantages to drive virtualization market growth

Worldwide virtualization software revenue will increase 43 per cent from $1.9 billion in 2008 to $2.7 billion in 2009, according to Gartner. Global virtualization penetration is on pace to reach 20 per cent in 2009 from 12 per cent in 2008. Its adoption within the IT organization is driven by the need to reduce the total cost of ownership (TCO), enhance the agility and speed of deployment of IT needs and minimize carbon footprint.

Gartner's definition of the virtualization market includes server virtualization management, server virtualization infrastructure and hosted virtual desktops (HVDs). Gartner estimates that revenue from HVDs will more than triple from $74.1 million to $298.6 million in 2009 while revenue from server virtualization management software will increase 42 per cent from $913.9 million in 2008 to $1.3 billion in 2009. Revenue from server virtualization infrastructure is predicted to grow 22.5 per cent from $917 million in 2008 to $1.1 billion in 2009.

Although HVD is an emerging technology that currently represents 11 per cent of the virtualization software revenue market, it will account for a growing proportion of corporate users through 2013. Virtual desktop infrastructure feeds additional server virtualization needs because the users' desktop data will now need to be managed in a virtualized server environment. Maturity and acceptance will result in a significant broadening of the addressable user population by 2010 as well as accelerated deployments.

From a vendor perspective, by 2013, Microsoft will challenge VMware as the dominant vendor in the server virtualization infrastructure market and will do very well in small and midsize businesses (SMBs). The server virtualization management market is currently wide open, with more than 100 vendors supplying products that meet some of the requirements in the management stack, while the HVD vendor landscape remains crowded, confusing, and full of opportunists.

Gartner recommends that vendors take advantage during this disruptive period by introducing leading-edge management tools in support of virtualization initiatives and ensure that virtualization-specific management products can integrate within existing management frameworks.

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SYS-CON's Virtualization News Desk trawls the news sources of the world for the latest details of virtualization technologies, products, and market trends, and provides breaking news updates from the Virtualization Conference & Expo.

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