Gartner: Worldwide Server Virtualization Market Reaching Peak
May 16, 2016
Share this

The worldwide x86 server virtualization market is expected to reach $5.6 billion in 2016, an increase of 5.7 percent from 2015, according to Gartner, Inc.

Despite the overall market increase, new software licenses have declined for the first time since this market became mainstream more than a decade ago. Growth is now being driven by maintenance revenue, which indicates a rapidly maturing software market segment.

Michael Warrilow, Research Director at Gartner, said: "The market has matured rapidly over the last few years, with many organizations having server virtualization rates that exceed 75 percent, illustrating the high level of penetration."

The market remains dominated by VMware, however, Microsoft has worked its way in as a mainstream contender for enterprise use. There are also several niche players including Citrix, Oracle and Red Hat, in addition to an explosion of vendors in the domestic China market.

While server virtualization remains the most common infrastructure platform for x86 server OS workloads in on-premises data centers, Gartner analysts believe that the impact of new computing styles and approaches will be increasingly significant for this market. This includes OS container-based virtualization and cloud computing.

The trends are varying by organization size more than ever before. According to Gartner, usage of server virtualization among organizations with larger IT budgets remained stable during 2014 and 2015. It continues to be an important and heavily used technology for these businesses, but this market segment is approaching saturation. In contrast, organizations with smaller IT budgets expect a further decline in usage through to at least 2017. This is causing an overall decline in new spending for on-premises server virtualization.

Gartner believes that organizations are increasing their usage of "physicalization," choosing to run servers without virtualization software. More than 20 percent of these organizations expect to have less than one-third of their x86 server OSs virtualized by 2017 — twice the amount reported for 2015. However, the underlying rationales remain varied.

The rise of software-defined infrastructure (SDI) and hyperconverged integrated systems (HCIS) are providing new options. It has put pressure on best-of-breed virtualization vendors to add more out-of-the-box functionality and provide a better experience and faster time-to-value.

"What was considered as the best approach to greater infrastructure agility only a few years ago, is becoming challenged by an array of newer infrastructure choices," said Warrilow.

Share this

The Latest

June 25, 2019

Employees at British businesses rate computer downtime as the most significant irritant at their current workplace (41 percent) when asked to pick their top three ...

June 24, 2019

The modern enterprise network is an entirely different beast today than the network environments IT and ops teams were tasked with managing just a few years ago. With the rise of SaaS, widespread cloud migration across industries and the trend of enterprise decentralization all playing a part, the challenges IT faces in adapting their management and monitoring techniques continue to mount ...

June 20, 2019

Almost two-thirds (63%) of organizations now allow technology to be managed outside the IT department, a shift that brings both significant business advantages and increased privacy and security risks, according to the 2019 Harvey Nash/KPMG CIO Survey ...

June 19, 2019

In a post-apocalyptic world, shopping carts filled with items sit motionless in aisles, left abandoned by the humans who have mysteriously disappeared. At least that’s the cliche scene depicted by sci-fi filmmakers over the past two decades. The audience is left to wonder what happened to force people to stop what they were doing and leave everything behind. If this past weekend was any indication, Armageddon begins when Target's cash registers shut down ...

June 18, 2019

Three-quarters of organizations surveyed by Gartner increased customer experience (CX) technology investments in 2018 ...

June 17, 2019

Users today expect a more consumer-like experience and many self-service web sites are too focused on automating the submission of tickets and presenting long, technically written knowledge articles with little to no focus on UX. Understanding the need for a more modern experience, a newer concept called "self-help" now dominates the conversation in its ability to provide a more deliberate knowledge experience approach that better engages the user and dramatically improves the odds of them finding an answer ...

June 13, 2019

Establishing a digital business is top-of-mind, even more so than last year, as 91% of organizations have adopted or have plans to adopt a digital-first strategy, according to IDG Communications Digital Business Research ...

June 12, 2019

If digital transformation is to succeed at the pace enterprises demand, IT teams, the CIOs who lead them, and the boardroom must forge a far greater alignment than presently exists. That is the over-arching sentiment expressed by IT professionals in a recent survey on the state of IT infrastructure and roadblocks to digital success ...

June 11, 2019

Given the incredible amount of traffic traversing corporate WANs, it's not surprising that businesses are seeing performance issues. If anything, it's amazing applications work as well as they do ...

June 10, 2019

Are your business applications sluggish? Choppy? Prone to getting hung up or crashing at the most inopportune times? If these symptoms sound familiar, you might be suffering from the heartache of … poor application performance. Stop me if any of this sounds familiar ...