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Server Virtualization: Competing Newer Technologies Challenge the Once Hot Market Segment
This year the server virtualization market is expected to reach $5.6 billion, according to Gartner. Despite these large number of dollars, the Gartner report finds that the bulk of the money is being generated from maintenance of existing licenses, not new licenses. The conclusion is that the once very hot virtualization market has peaked.
Newer technologies like containers, cloud computing, software-defined infrastructure (SDI), and hyperconverged integrated systems (HCIS) are all putting pressure on the server virtualization market. Surprisingly, because of these new technologies, businesses are increasingly choosing to run their servers as “physicalization”, not “virtualization”.
Michael Warrilow, research director at Gartner, said that “the market has matured rapidly over the last few years, with many organizations having server virtualization rates that exceed 75%, illustrating the high level of penetration. What was considered as the best approach to greater infrastructure agility only a few years ago, is becoming challenged by an array of newer infrastructure choices.”
