Virtualization (Global)

Virtualization. Classification and applications

Main article: Virtualization. Classification and applications

Hardware Virtualization

White Paper: Hardware Virtualization

2023

Global Virtualization Market Growth by 11% to $4.57 Billion

In 2023, costs in the global virtualization market reached $4.57 billion. A year earlier, the volume of this sector was estimated at $4.12 billion, that is, the growth was about 11%. An analysis of industry trends is provided in the Market Research Future review published in early November 2024.

One of the main drivers of the market in question, the authors of the study call the ongoing development of cloud services. These platforms allow companies to use the computing resources and storage of the required size for almost any task and activity. Enterprises can quickly implement virtual desktops and applications for their employees, avoiding the burdensome costs of purchasing equipment and maintaining. In addition, cloud systems provide scalability and flexibility: desktops and applications can be accessed by employees anytime and from anywhere in the world with an Internet connection.

Another stimulating factor is the growing popularity of remote and hybrid work models. Given that enterprises can save a lot of money that would otherwise be spent on paying for office space and other overhead, remote workflows are becoming more and more in demand. Research also suggests that remote work improves morale and productivity. However, to make this approach as effective as possible, companies need to provide employees with access to corporate resources on any device with a network connection. Virtualization tools help.

Another important factor in market expansion is the increasing need to strengthen security. Because virtualization provides a centralized and controlled environment, it can make it easier for business owners to track and audit user activity. In addition, control over applications is improved. All this helps to prevent leaks of confidential information and minimize other risks.

It is estimated that in 2023 more than 40% of the revenue in the market under consideration was provided by infrastructure. In virtual desktops (VDI) terms of user equipment, the industry is segmented into laptops, desktops, mobile devices and thin customers. Laptops took the largest share due to their portability and versatility. At the same time, mobile gadgets such as smartphones tablets are gaining popularity. In regional terms, in 2023, it was the leader, North America which accounted for more than 38% of revenue. The dominance of the region can be attributed to the presence of leading technology providers, widespread adoption cloud computing and growing demand for remote work solutions. In second place in terms of costs is, followed by Europe the Asia-Pacific region, which is experiencing high growth rates. The list of leading players in the industry includes:

• Dell;
• Microsoft;
• Parallels;
• Res Software;
• Oracle;
• Login VSI;
• Igel Technology;
• Ericom Software;
• Amazon Web Services (AWS);
• IBM;
• Google Cloud;
• HP;
• Teradici;
• VMware;
• Citrix Systems.

At the end of 2024, revenue in the global virtualization market is estimated at $5.05 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 10.72%. As a result, by 2032, costs on a global scale could rise to $11.42 billion.^[1]

Spending on virtual jobs in the cloud in the world reached $6 billion at the end of the year (an increase of 14%)

At the end of 2023, the volume of the global virtual desktop market (VDI) in the cloud reached approximately $6 billion. Growth in relation to 2022, when expenses in this area amounted to $5.25 billion, was recorded at 14%. Drivers are the demand for platforms for remote work, as well as the need to form a secure, scalable and cost-effective IT infrastructure. This is stated in a study by Market Research Future, the results of which were published in early September 2024.

Analysts point out that VDI cloud solutions provide a number of advantages over on-premises deployment: reduced initial capital investment, simplified management, and scalability. Another driver is advances in cloud computing and virtualization technologies. Cloud-based platforms can run hardware-intensive applications so companies can optimize their IT infrastructures, reducing costs and improving employee productivity. Plus, it is possible to integrate advanced technologies such as artificial intelligence and machine learning.

According to the deployment model, the authors of the study divide the VDI industry into public, private and hybrid clouds. Among them, the public segment dominates, which is explained by the demand for SaaS solutions (software as a service), flexibility and economic efficiency. Companies get access to the right resources with pay-as-you-go, which ensures optimal spending. In addition, there is no need for advance investments in hardware and software. The public model is especially attractive to small and medium-sized enterprises with a limited IT budget. In turn, the private cloud provides organizations with a dedicated VDI environment, offering greater control and security. This model is preferred by enterprises that require a high level of personalization. Hybrid cloud combines the benefits of both public and private clouds, enabling organizations to optimize VDI deployment based on their specific requirements. The public cloud segment is estimated to have taken over 50% of the market in 2023. At the same time, the largest demand for virtual jobs in the cloud is observed in the financial services sector - 24.5%.

Functionally, security is a critical aspect of the cloud VDI market. In particular, data encryption in 2023 accounted for $1.96 billion, multifactorial authentication - $1.4 billion, identity management solutions - $1.2 billion.

Citrix Systems, Google, VMware, Nutanix, Dell Technologies, Oracle, Microsoft, Parallels International, IBM, Cisco, HPE, Fujitsu, Red Hat, Sangfor Technologies and AWS are named significant market players. Geographically, in 2023, the largest costs fell on North America, where many leading developers of VDI products are concentrated. In second place in terms of costs is Europe, followed by Asia-Pacific. South America, the Middle East and Africa are showing moderate growth.

In 2024, revenue in the market under consideration is estimated at $6.76 billion. Market Research Future analysts believe that in the future, the average annual growth rate in complex percentages (CAGR) will be 13.42%. As a result, by 2032, the cost of VDI cloud solutions will reach approximately $18.5 billion.^[2]

2022: Forrester: Virtual Machine-Based Infrastructure Outdated and Risky

In September 2022, the analytical company Forrester Research prepared a guide to architecture planning and technology implementation for 2023. It follows that IT departments will face tighter spending controls as the economy deteriorates. In addition, experts warned that the infrastructure based on virtual machines is outdated and has become risky.

{{quote 'Unlike the situation with the pandemic, which entailed huge investments in technologies that provide new delivery models, digital experience and remote work from anywhere, the response to current economic difficulties requires optimization and rationalization, - said in the document, excerpts from which the portal The Register publishes. It is also noted that IT departments will have to maintain sustainable modern environments without undermining the organization's technology strategy adapted to the future. }}

Forrester: Virtual machine-based infrastructure is outdated and risky

To help businesses assess costs across the board and maximize value for their business, Forrester experts have prepared guidance with guidance on where to maintain and increase investment and where to optimize and reduce. Plus, according to experts, experiments with some developing technologies can bring good results in 2023.

Forrester said that in difficult economic conditions, some technologies become either outdated or risky for investment. At the top of the list of technological solutions, investments in which it is recommended to reduce or avoid, analysts have put environments based on virtual machines.

{{quote "Native cloud technologies have now become the basis for enterprise-class IT infrastructure, since container-based platforms Kubernetes and development clouds have already reached sufficient maturity for widespread implementation," the experts explained. }} Forrester also points out that the purchase of Broadcom by VMware threatens to raise prices while reducing the level of innovation in the traditional leader in virtual machine technologies. Therefore, analysts suggest considering the possibility of reducing or at least maintaining at a stable level the existing infrastructure of organizations based on virtual machines.

Forrester Research Prepares Architecture Planning and Technology Implementation Guide for 2023

In addition, analysts attributed the following to the list of outdated or risky technologies:

• Separate DevOps tools that require manual integration, as they can complicate. supply chains software
• Stand-alone capacity and asset management tools or tools ITSM that are not suitable for non-service. IT
• business applications that "do not focus on the right results, focused on business and customers. ″ Instead, experts recommend giving preference to applications that bring revenue.
• Specialized data management solutions such as data stores, master data management platforms, or data cleanup;
• Private 5G networks, as they evolve slowly and their potential benefits, are likely to be enabled by other wireless technologies.

As for technologies in which investment is welcome, this list includes tools that optimize costs and/or contribute to rationalization. In particular, recommended solutions include cloud infrastructure cost management, AIOps, enterprise service management solutions, and configuration management databases, all of which improve efficiency.^[3][4]

2021: Global Virtualization Solutions Market Valued at $68 Billion

ResearchAndMarkets analysts estimated the global market for virtualization solutions for 2021 at $68 billion. They published their study on February 21, 2022.

According to analysts, the market is growing due to such factors as the advantages of storage virtualization (it provides higher control and flexibility compared to physical storage of information), convenient management of IT infrastructure and its components, as well as the growing use of these technologies in the public sector and the financial industry. In addition, virtualization contributes to the development of cloud services and the growth of the number of projects in the field of video conferencing and telemedicine.

The global market for virtualization solutions was estimated at $68 billion

According to experts, virtualization optimizes scalability and workloads with multiple resources created on a single computer or server, which reduces the total number of servers, reduces power consumption and reduces the cost of infrastructure and its maintenance.

At the same time, analysts consider the growing threats of cybersecurity and the lack of a sufficient number of highly qualified specialists in such technologies as restraining factors for the virtualization tools market.

The main technical difficulties and limitations of desktop virtualization (VDI) are related to the provision of work with peripherals. In some cases, this will require a review of individual business processes. For example, if the printing process can be relatively easily and painlessly centralized with the help of existing software products on the market, then scanning will require the development of a specialized solution that takes into account the specifics of the workflow in a particular company. To work out such aspects in the early stages, pilot VDI implementations should be carried out for a small group of employees.

The researchers call the following companies the largest developers of virtualization solutions (listed in alphabetical order without specifying shares):

• Accenture;
• Cisco Systems;
• Citrix Systems;
• Fujitsu;
• Microsoft;
• Odin;
• Oracle;
• Parallels;
• Red Hat;
• Symantec;
• Toshiba;
• VMware.

Analysts distinguish several main types of virtualization:

• Desktop virtualization that allows multiple individual desktops to be hosted and managed on a single, centralized server
• Network virtualization to divide network bandwidth into separate channels and assign them to specific servers or devices.
• Software virtualization that separates applications from hardware and operating system
• A storage virtualization that consolidates multiple networked storage into a single storage device that can be accessed by multiple users.

Server virtualization has become ubiquitous, with 92% of organizations using it, according to a Spiceworks study published in 2021. However, other forms of virtualization have yet to catch up. Among new virtualization technologies, the most common is storage virtualization (also called software-defined storage) with a 40% acceptance rate, followed by application virtualization with 39% and virtual desktop infrastructure (VDI) technology with 32%. In addition, network virtualization (also called a software-defined network) and data virtualization enjoy a 30% acceptance rate^[5]

Notes