Computer virtualization is a technology that enables multiple operating systems to run on one physical computer. This technology has several important implications:
Computer virtualization is just starting to gain widespread acceptance, and its main customers are telecommunications firms, pharmaceutical companies, and technology-related businesses.
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.
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.
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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