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Summary:

As much as we hear about virtualization, it can be surprising to get actual numbers on deployments and realize how low they remain — just 18-19 percent of workloads on enterprise x86 servers have actually been virtualized, according to new data released by Lazard Capital Markets.

As much as we hear about virtualization, it can be surprising to get actual numbers on deployments and realize how low they remain — just 18-19 percent of workloads on enterprise x86 servers have actually been virtualized, according to new data released by Lazard Capital Markets. The investment bank expects 48 percent of enterprise workloads to be virtualized by 2012, which means the number of virtual machines will grow to 58 million from 5.8 million in 2008. So the software to manage virtualized machines is going to be hot, but there’s still room for growth.

The other things adding spice to the commodity hypervisor market are the growth in server virtualization among small- to medium-sized businesses and the next level of virtualization– virtualizing the desktop. Virtualizing the desktop allows IT departments to store a copy of desktops on a server and deliver it to a remote client or PC.  This is a boon for Citrix, which has been pushing desktop virtualization for a while and appears to be the leader over rival VMware when it comes to customer interest in the technology, according to the Lazard report issued on Friday. A Jefferies research report out this morning notes that in a survey of the top 25  software resellers, 44 percent said their customers has expressed an interest in virtualizing the desktop. From the note:

Some VARs see VDI as the next logical step after app virtualization. Moreover, Windows 7 upgrades are causing IT depts to reassess their entire desktop infrastructure. Ironically, some customers are looking to use VDI as a way to increase life of their existing hardware.

But beyond the battle between VMware and Citrix for enterprise server and desktop virtualization, SMBs are accelerating their virtualization plans and choosing Microsoft’s Hyper-V in order to do so. Before 2009, some 30 percent of global organizations had started virtualizing — that number which has since doubled, driven predominantly by SMBs, Lazard said. SMB penetration is expected to exceed large enterprise penetration by next year, according to Lazard. So it looks like VMware will have to work hard to stay ahead of where the virtualization market is growing — on the desktop and with SMBs.

  1. Eric Pritchett Monday, April 19, 2010

    Proxmox VE is a pretty neat open source vitalization system… worth checking out.

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  2. When it comes to virtualization, we’ll never really be there.

    Sorry for the flippancy. It’s a follow-on from asking my daughter yesterday: Do you really have an imaginary friend, or are you just making it up?

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  3. [...] services. The one piece that makes all this flexibility possible: VMware. VMware also is facing an all-out assault on the virtualization front, and rather than battling simultaneously with Microsoft, Citrix, Oracle and Red Hat, it’s [...]

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  4. If you want to learn more about virtualizationmy client Cisco is having a Cisco Live event at the Mandalay Bay Resort in Las Vegas.

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  5. [...] workloads still in the minority, and the percentage of virtualized servers even further behind. If we’re not there yet on virtualization, what chance is there that cloud computing or Green IT will be there within the next 12 months, or [...]

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