Opportunities for Vendors of Virtualization Software


By the end of this year, close to three quarters of server workloads are expected to be virtualized. Thus, as server workload virtualization is fast reaching the point of saturation, the adoption curve for virtualized server workloads is expected to flatten out and as a result, growth opportunities in server virtualization are expected to diminish. At present, server virtualization accounts for nearly half the revenue of the Global Virtualization market, which has traditionally been dominated by VMware.

As the adoption curve of virtualized server workloads is flattening, it may appear that the opportunities for vendors such as Citrix Systems and Microsoft in this market are limited to catching up with VMware. However, as the adoption of cloud computing and heterogeneous virtualized environments is increasing, it is expected that over the next few years, quite a few interesting opportunities may come up for vendors in the virtualization space.

A common problem being faced these days is the increasing complexity of monitoring and managing virtualized heterogeneous environments. This by default gives rise to opportunities for vendors that can provide tools to manage virtualized environments. In fact, the Virtualization Management Tools segment is currently the fastest growing segment in the Global Virtualization Software Market, and it is expected that it will continue to be the leading market segment in the next few years. Over the next few years, this fast-growing segment is expected to provide a host of opportunities to not only niche system management vendors such as Citrix and Microsoft but also to traditional heavyweights such as IBM, CA, HP, Dell, and BMC. Currently, there is no single tool that addresses all the challenges associated with managing complex virtualized environments. Therefore, we expect a lot of competitive action in the Virtualization Management Tools segment as vendors scramble to launch tools that satisfy all end-user requirements.

As desktop virtualization has never taken off the way server virtualization has and the growth curve for server virtualization is gradually flattening, the market for virtual management tools will witness intensified competition as a result of innovation aimed at reducing the complexities of virtualization. Additionally, we expect that there will soon be increasing interest in the area of network and storage virtualization and that as a result, network and storage virtualization will pick up pace from 2014.

Some of our existing and upcoming reports with regard to the Virtualization market are as follows: