Cloud Computing  4 hrs ago  Comment 
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and...
Cloud Computing  Oct 24  Comment 
Increased competition in the telecom market required Vodafone to accelerate their release cadence—at the same time that growing system complexity was making it harder to test. Learn how service virtualization is helping them deliver top-quality...
Forbes  Oct 20  Comment 
Software-Defined Networking (SDN) and Network Function Virtualization have promised to revolutionize the datacenter. SDN breaks the tight connection between the forwarding plane (moving data from point A to point B) and the control plane (the...
Cloud Computing  Sep 28  Comment 
Virtualization continues to impact the enterprise and how IT delivers services to meet business needs. Desktop Virtualization (VDI) offers employees anywhere, anytime, flexible access to their desktops whether they are at home, on the road, in the...
Cloud Computing  Sep 22  Comment 
The next generation of platforms is here with options in both cloud and on premises hyperconverged infrastructure. How do real people in today's business world make the correct choices on where to move? As IT departments look to move beyond...
Cloud Computing  Sep 14  Comment 
To achieve "quality @ speed", it's essential to have unrestrained access to a trustworthy and realistic test environment. It is important to recognize that a complete test environment includes the application under test (AUT) and all of its...
Forbes  Sep 9  Comment 
Technology shifts like cloud computing and dramatic improvements in virtualization have remade the CIO career trajectory.
Cloud Computing  Sep 1  Comment 
Agile development is highly iterative, and relies upon the rapid development of software and early feedback. These practices are well understood and practiced in mature application development teams. The shift to an agile software development...
Forbes  Sep 1  Comment 
Back in 2003, EMC Corporation acquired virtualization software company VMware for $625 million, while VMware is currently valued at around $32 billion. ((EMC Completes Acquisition of VMware, EMC Press Release, January 2004)) Massive growth in the...
Cloud Computing  Aug 25  Comment 
Server Virtualization has transformed the way we manage server workloads but virtualization hypervisors were not the endgame of datacenter management. What is the role of server virtualization and hypervisors in the new age of cloud, containers,...


Computer virtualization is a technology that enables multiple operating systems to run on one physical computer. This technology has several important implications:

  • It allows a computers' tasks to be abstracted from a physical machine. As a result, backup and disaster recovery are much more flexible and comprehensive, and data can be moved or restored to a different machine in a matter of seconds. This alleviates the need to have duplicate copies of every business critical machine and reduces IT costs.
  • Computer hardware resources are more flexible. A powerful computer can run multiple tasks concurrently across different operating systems such as Linux, UNIX, Windows, and Mac, at the same time.

Computer virtualization is just starting to gain widespread acceptance, and its main customers are telecommunications firms, pharmaceutical companies, and technology-related businesses.

Companies involved in virtualization

2006 breakdown of the $900MM server virtualization market
2006 breakdown of the $900MM server virtualization market
  • VMware Inc. (VMW) holds a commanding lead in the computer virtualization market. With its recent IPO, the company is well-positioned to continue its growth as the market for such products expands.
  • Microsoft (MSFT), Novell (NOVL), XenSource, and Red Hat (Linux) all participate in the virtualization market as well.
  • Apple (AAPL) could be developing its own virtualization software.

Trends and forces

Virtualization software holding fort in downturn

Which business software categories are bearing the brunt of the economic downturn in 2008? Enterprise Resource Planning, Document and Enterprise Content Management, and Customer Relationship Management Software have all been hard hit.

Image:Software spending areas.gif

But on the bright side, corporate spending for Virtualization Software has increased significantly, with VMware strengthening its domination over this market. This shows points to a significant trend that considering that Virtualization is in its growth stage, its relatively less vulnerable to the downturn.

[[Image: Virtualization vendors.gif]

None of the other major competitors have exhibited anything like this explosive growth, although Citrix (26%; up 5-pts) has also shown a jump in current share. Looking at planned corporate software purchases over the next 6 months, VMware (73%; down 3-pts) towers over the rest of the market, with better than a four-fold lead over its closest competitors. But once again, Citrix (15%; up 8-pts) is showing momentum going forward.

Thus, in a depressed corporate spending environment, Virtualization is one of the only software spaces showing an increase in purchasing going forward

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki