Demand for server virtualisation software rises as cloud and OS technologies proliferate

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Demand for server virtualisation software rises as cloud and OS technologies proliferate

An increased need for high speed data centers combined with a rapid shift to the cloud are driving the need for the necessary infrastructure

Published on 25th January 2023

According to Fact.MR, a market research and competitive intelligence provider, the global server virtualization software market is estimated to achieve a valuation of US$ 16 billion by 2033, expanding at a 7.1% CAGR from 2023 to 2033.

Server virtualization is a cost-effective technique to deliver web hosting services while maximizing the use of current resources in IT infrastructure. Servers only utilize a small part of their computing power without server virtualization. Since the workload is allocated to only a subset of the network’s servers, servers lie idle. Data centers get overloaded with underutilized servers, resulting in resource and power waste.

Key Takeaways from Market Study

The global server virtualization software market amounted to US$ 8 billion in 2022.
The market is predicted to evolve at a CAGR of 7.1% during the forecast period (2023 to 2033).
Revenue from the sales of server virtualization software is expected to reach US$ 16 billion by 2033.
The United States market was worth US$ 2.6 billion in 2022.
The OS-level virtualization segment is projected to increase at a CAGR of 5.5% from 2023 to 2033.

Competitive Landscape

The market for server virtualization software is highly competitive. Key players in the server virtualization software market are using various development techniques such as mergers and acquisitions, collaboration, and product launches to increase their market share and consumer base.

VMware, Inc., a prominent cloud computing and virtualization technology company based in the United States, confirmed the continuation of its partnership with IT behemoth Microsoft Corp. in August 2022. The partnership sought to provide enterprise accessibility to multi-cloud services in Microsoft Azure using VMware vSphere. Azure VMware Solution was introduced as part of VMware Cloud Universal to give customers a cost-effective and versatile cloud solution.
In May 2022, Red Hat, Inc., a leading US-based software company, partnered with US Department of Energy (DOE) laboratories to develop cloud environment standards in high-performance computing (HPC). The partnership sought to provide solutions for the efficient operation of ML, AI, and DL-based HPC workloads.
Alibaba Cloud, a subsidiary of Alibaba Group, announced 'Yitian 710' server chips for usage in its data centers in October 2021. Alibaba Cloud also revealed the creation of its proprietary servers, dubbed 'Panjiu,' which will be powered by these chips. The combination is anticipated to boost cloud services by lowering energy consumption and increasing computing performance.
Google LLC revealed an expansion of its Chrome Enterprise Recommended partner program to install the Chrome Operating System (OS) in contact centers in September 2021. The expansion is intended to provide a variety of benefits, including certified contact-center solutions, a secure platform and remote management, and access to virtualization desktop infrastructure.

Key Companies Profiled

Amazon.Com, Inc
Hewlett-Packard Co.
Broadcom Inc
IBM Corp
Capgemini SE
Cisco Systems, Inc
Citrix Systems Inc
Dell Inc
Microsoft Corporation

Regional Analysis

North America is expected to dominate the global server virtualization software market during the forecast period. The regional market is projected to be fueled by increased adoption of server virtualization, technological advancements, and increased investments in cloud-based services.

Moreover, the United States is leading the North American market due to the presence of major global information technology and telecommunications businesses such as VMware, IBM Corporation, and Cisco Systems, Inc.