Skip to main content

Worldwide Virtualization Market Opportunity

According to IDC, worldwide virtualization license shipments in the second quarter of 2008 (2Q08) increased 53 percent year-over-year, compared to a 72 percent year-over-year increase the previous quarter.

The x86 server market led the way with 60 percent year-over-year growth followed by the EPIC server market with 18 percent growth. Worldwide CISC and RISC server virtualization licenses declined 15 percent and 7 percent year over year, respectively.

"Quarterly totals of x86 server virtualization licenses continue to experience healthy growth, although the growth rates have slowed over the last four quarters. The modest decline in growth rates indicates that the market is showing early signs of maturation," said Brett Waldman, research analyst for System Software at IDC.

Based on our conversations with end users, IDC believes that the high-volume consolidation opportunities -- the low hanging fruit in the x86 server virtualization market -- is starting to dry up. This is, in turn, resulting in smaller deals overall.

The virtualization platform providers are going to have to adapt their go-to-market strategies to this ever-changing dynamic, as new growth opportunities open up around new deployment of virtualized servers not specifically targeted at consolidation, and at new customer segments such as midsized companies.

Worldwide new server shipments virtualized increased 52 percent year over year in the second quarter, compared to 70 percent growth in 1Q08.

Worldwide virtualization software revenue grew 15 percent year over year in 2Q08, compared to 32 percent growth in the first quarter of 2008. The growth in virtualization software revenue primarily came from the x86 server market, which grew 39 percent year over year.

EPIC virtualization software revenue also increased year over year, albeit at a slower pace of 9 percent.

Popular posts from this blog

Navigating AI Implementation Challenges in 2025

As we approach 2025, the global Artificial Intelligence (AI) market is poised for significant growth. Traditional AI spending is rising, while Generative AI (GenAI) struggles to meet lofty expectations. This apparent dichotomy presents challenges and opportunities for vendors and business leaders navigating the complex world of AI implementation. Let's explore the overall situation. Traditional AI: A Pragmatic Approach In the coming year, we expect to see a surge in traditional AI spending as enterprises seek pragmatic, ROI-driven solutions. This trend is driven by a growing recognition of the limitations and risks associated with GenAI projects, which have shown alarmingly high failure rates of 80 to 90 percent in proof-of-concept stages. The trend towards traditional AI is further supported by data from Amazon Web Services (AWS), which revealed that over 85 percent of AI projects in 2024 were not based on GenAI.  This insightful statistic underscores the continued relevance and ...