What is VDI and is it Worth the Investment?

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In recent weeks, Virtual Desktop Infrastructure (VDI) has sparked some media controversy over whether VDI solutions are still worth investment. 

One the one side, Forbes’ contributor Ben Kepes writes that it is “last year’s solution to last decade’s problem”. On the other hand, Tommy Hwang, CIO of the Merit Systems Protection Board said in a recent FedTech Magazine article that “the flexibility of VDI solutions can facilitate bring-your-own-device programs and can save agencies money by allowing them to purchase less-powerful machines”.

First things first, what is VDI?

Virtual desktop infrastructure is a centralized enterprise computing model where system images are hosted centrally on a server and the access to these system images is given to end-users as and when required using a remote connection protocol. The system images are assigned with various computing resources and enterprise applications which are required by end-users for their computing processes.

The computing resources are also allocated dynamically from the resource pool which is centralized on the server-end. Due to the centralized allocation of the resources, there is a considerable increase in the productivity of the enterprise infrastructure leading to a higher adoption among enterprises.

In fact, the Global VDI Market in the US is projected to grow at a CAGR of 8.47 percent for the 2012-2016 period.

So what’s the problem?

One of the major concerns faced by enterprises and end-users in adopting VDI solutions is the need for huge capital expenditure to restructure the enterprise networks. Virtualized solutions need a prerequisite which requires an overhaul of the current enterprise infrastructure.

Further, there is a need to procure various software solutions which form the base for the efficient execution of a virtualized enterprise environment. Since the adoption of a virtual desktop infrastructure requires huge capital investment, enterprises are looking at alternative computing solutions which can provide better computing at lower expenditure.

As the market stands, there are four main market leaders, each offering similar remote desktop services:

  • Citrix’s XenDesktop
  • VMware’s vSphere
  • Microsoft’s Windows Virtual PC
  • Oracle’s VM Server

While each of these solutions provide comprehensive services to clients, they all have one common problem.

Cost.

XenDesktop, vSphere, Windows Virtual PC and VM Server all cost approximately US$ 900 a year for every desktop. 

However, there is good news on the horizon for companies looking to invest in VDI solutions. Cloud computing and cloud-based applications and services are witnessing increasing adoption from enterprises and end-users. With increasing bandwidth support being provided by communication service providers, there is a rapid increase in the access of enterprise data and applications from smartphones, tablets and other handheld devices. Virtual desktop infrastructure images are being stored in the data centers and accessed over the cloud infrastructure which is decreasing the operational costs considerably.

Further, with the cloud-based virtual desktop solutions finding increasing adoption, there are many applications being supported on the cloud which are being accessed over the virtual desktop infrastructure solutions.

Allowing access to remote desktop services via the cloud at a reduced cost is also opening the doors for SMEs to take advantage of VDI solutions, which would normally be out of their price range. SMEs are experiencing a need for business solutions which can reduce their capital and operational expenses. With the increasing complexity of the network infrastructure, there is a need to procure business solutions which can ease the facilitation of desktop systems to end-users.

Using virtual desktop infrastructure solutions, the management process is centralized as the desktop images are centralized at the server-end and end-users are able to access the systems using their login credentials. Further, virtual desktop infrastructure solutions can be scaled easily, which is another benefit driving the increasing adoption among end-users.

In addition, with the advent of cloud-based solutions, the annual cost to access VDI per desktop is expected to decrease to US$ 825 by 2018.  While it might not seem like a big deal, a company with 100 computers will save US$ 7500 annually, which IS a big deal for SMEs.  So while we see are able to grasp valid points from both sides of the VDI debate, we are inclined to believe that virtual desktops are still well worth the investment. 

For more information, view our 2014-2018 report on the Global Virtual Desktop Infrastructure (VDI) Market in the US.

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