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

November 17, 2017

Just in time for the holiday shopping season, APMdigest asked experts from across the industry for their opinions on the best way to measure eCommerce performance, in terms of applications, networks and infrastructure. Part 3, the final installment, covers the customer journey ...

November 16, 2017

Just in time for the holiday shopping season, APMdigest asked experts from across the industry for their opinions on the best way to measure eCommerce performance, in terms of applications, networks and infrastructure. Part 2 covers APM and monitoring ...

November 15, 2017

As the holiday shopping season looms ahead, and online sales are positioned to challenge or even beat in-store purchases, eCommerce is on the minds of many decision makers. To help organizations decide how to gauge their eCommerce success, APMdigest compiled a list of expert opinions on the best way to measure eCommerce performance ...

November 14, 2017

More than 90 percent of respondents are concerned about data and application security in public clouds while nearly 60 percent of respondents reported that public cloud environments make it more difficult to obtain visibility into data traffic, according to a new Cloud Security survey ...

November 13, 2017

Today's technology advances have enabled end-users to operate more efficiently, and for businesses to more easily interact with customers and gather and store huge amounts of data that previously would be impossible to collect. In kind, IT departments can also collect valuable telemetry from their distributed enterprise devices to allow for many of the same benefits. But now that all this data is within reach, how can organizations make sense of it all? ...

November 09, 2017

CIOs trying to lead digital transformation at the speed needed to succeed need a mix of three scale accelerators, according to Gartner, Inc. The three scale accelerators include: digital dexterity, network effect technologies, and an industrialized digital platform ...

November 08, 2017

While the majority of IT practitioners in the UK believe their organization is equipped to support digital services, over half of them also say they face consumer-impacting incidents at least one or more times a week, sometimes costing their organizations millions in lost revenue for every hour that an application is down, according to PagerDuty's State of Digital Operations Report: United Kingdom ...

November 07, 2017

Today's IT is under considerable pressure to remain agile, responsive and scalable to meet the changing needs of business. IT infrastructure can't become a bottleneck, it must be the enabler. But as new paradigms, such as DevOps, are adopted, data center complexity increases and infrastructure constraints can block the ability to achieve these goals ...

November 06, 2017

It's 3:47am. You and the rest of the Ops team have been summoned from your peaceful slumber to mitigate an application delivery outage. Your mind races as you switch to problem solving mode. It's time to start thinking about how to make this mitigation FUN! ...

November 03, 2017

With the increased complexity of IT environments, the rising cyber threats and the growing number of IT alerts, IT organizations have come to the realization that throwing more people at IT issues doesn't solve the problem ...