Server Virtualization Software - Global Strategic Business Report

This report analyzes the Global market for Server Virtualization Software in Millions of US$ by the following Host Operating Systems – Windows, Linux & Other Open Source, and Others. Annual estimates and forecasts are provided for the period of 2006 through 2015. The report profiles 35 companies including many key and niche players such as Citrix Systems, Inc., Dell, Inc., Hewlett-Packard Development Company, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Parallels, Inc., Proxmox Server Solutions GmbH, Red Hat, Inc., and VMWARE, Inc. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

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SERVER VIRTUALIZATION SOFTWARE

A GLOBAL MARKET REPORT

CONTENTS

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-3
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3

II. Executive Summary

1. INDUSTRY OVERVIEW II-1
The Hype Surrounding Virtualization: A Review II-1
Growth Prospects for Virtualization Software Tilt Upwards II-1
Table 1: World Recent Past, Current & Future Analysis for
Virtualization Software - Breakdown of Annual Sales in US$
Million for Years 2006, 2009 & 2015 (includes corresponding
Graph/Chart) II-2

Table 2: Worldwide Virtualization Software Market (2007):
Percentage Share Breakdown of Revenue by Geographic Region -
Americas, EMEA and Asia (includes corresponding Graph/Chart) II-3

Table 3: World Market for Virtualization Software (2009):
Percentage Breakdown of Sales for Server Virtualization
Software, Presentation Virtualization Software, Desktop
Virtualization Software, Application Virtualization Software
and PC Disk Virtualization Software (includes corresponding
Graph/Chart) II-3
Server Virtualization: An Important Cog in the IT Wheel II-3
Rationale Behind the Waxing Popularity of Server
Virtualization Software II-4
Cost Benefits from Server Consolidation Drive the Business
Case for Server Virtualization II-4
Table 4: Cost Benefit Analysis of Virtualization (2008):
Breakdown of Annual Costs (US $ per User) within
Unvirtualized, Basic Virtualization and Advanced
Virtualization Environments by Usage Case Scenario (includes
corresponding Graph/Chart) II-5
Impact of Recession on Server Virtualization II-5
Developed Markets - The Early Birds in Server Virtualization
Space II-6
Virtualized Server Sales on the Rise in Western Europe II-6
Server Virtualization: Enabling Green IT Strategy II-7
Table 5: Energy Consumption in Server Rooms: Comparison of
Power Consumption (in KW) for Rack, Blade & Mainframe Server
Environments (includes corresponding Graph/Chart) II-8
Competitive Scenario II-8
Table 6: Global Market for Server Virtualization (2007):
Percentage Market Share Breakdown of Leading Players
(includes corresponding Graph/Chart) II-9

Table 7: X86 Server Virtualization Market (2007): Percentage
Share Breakdown of Revenue by Leading Players (includes
corresponding Graph/Chart) II-9
Noteworthy Trends, Growth Drivers & Issues II-9
Server Virtualization Set to Become a Standard II-9
Increasing Attention on Business Continuity Drives Adoption
of Server Virtualization II-10
Small & Medium Businesses: An Emerging & Lucrative Client
Cluster II-10
Virtualization Software Disrupts Physical Server Market II-11
SANs: Best Choice of Primary Storage Configuration for
Virtual Servers II-11
Table 8: Virtual Servers Market (2009): Illustrative
Findings on the Percentage of Organizations Opting for
Various Types of Primary Storage Configuration (includes
corresponding Graph/Chart) II-11
X86 Server Virtualization: A Key Element in Server
Virtualization Market II-12
Factors Driving X86 Server Virtualization II-12
Table 9: Server Virtualization Software (2007 & 2009):
Percentage Share Breakdown of Revenue by Server
Architecture II-12

Table 10: X86 Server Market: Short to Medium Term
Perspective for X86 Server Shipments (in Thousands Units)
and X86 Server Installed Base for Years 2009 and 2011 II-13
Server Virtualization Gaining Traction in Developing Markets II-13
Unchecked Virtualization Threatens to Spawn Compliance &
Network Security Issues II-13
Server Virtualization Software: Licensing and Support Concerns II-14

2. TECHNOLOGY OVERVIEW II-15
Virtualization Technology: A Background Study II-15
Virtualization Software: A Key Enabler II-15
Server Virtualization Software: An Introduction II-16
Server Virtualization Approaches II-16
Full Virtualization II-17
Para Virtualization II-17
Operating System Level Virtualization II-17
Purpose II-18
Key Benefits II-18
“Little” or “No” Overhead II-18
Storage II-18
Flexibility - A Key Challenge II-18
Virtual Server II-18
Virtual Servers Vs Physical Servers II-19
Physical Server to Virtual Server Migration II-19
Types of Server Virtualization II-20
x86 Server Virtualization II-20
Midrange Server Virtualization II-20
Key Steps in Implementation of Server Virtualization II-20
Planning II-20
Evaluation II-20
Component Inventory II-21
Performance Metrics II-21
Candidate Identification II-21
Selection and Implementation II-21
Deployment and Selection II-21
Integrated Virtualization II-21
Elemental virtualization II-22
Deployment of Virtualization Software II-22
Usage II-22
Security of Virtual Environments II-22
Pros & Cons II-22
Key Benefits Package II-22
Better Functionality Levels II-23
Provides Operational Flexibility II-23
Ensures Rapid Enhancement of Existing IT infrastructure II-23
Streamlining Server Management II-23
Ensures Better Server Utilization Rates II-23
Reduces Downtime II-24
Reduction in Operating and Maintenance Costs II-24
Uncomplicated Business Continuity Feature II-24
Challenges II-24
Performance Degradation II-24
Impact on CPU and Network Performance II-24
Impact on Storage Performance II-25
Impact on Memory Performance II-25
Impact on Network Traffic II-25
Impact on Chatty Applications II-25
Scalability Challenges II-26
Challenges with Tracking Dynamic VMs II-26
Security Challenges II-26

3. TECHNOLOGY INTRODUCTIONS/ INNOVATIONS II-27
Oracle Presents Oracle VM Server for SPARC 2.0. II-27
VMware & NetApp Present their New Offering for Midsize
Enterprises II-27
Citrix Releases its Latest XenServer Version II-27
Dell Introduces 4 New PowerEdge Servers II-27
Fujitsu Unveils ‘My Very First Hyper-V' Server Virtualization
Solution II-28
VM6 Software Unveils VM6 VMex Enterprise Edition II-28
Red Hat Expands its Virtualization Product Portfolio
To
Compete with VMware and Microsoft II-28
Oracle Announces Launch of Latest Server Virtualization Software II-29
Neterion Announces Global Launch of 3rd Generation I/O
Virtualized X3110 10GbE Server Adapter II-29
Hewlett-Packard Unveils NAS Platform II-30
IBM Introduces IBM Virtual Server Security II-30
Lenovo Introduces New ThinkServers II-30
Apptio Launches Server Virtualization Cost Transparency Solution II-31
Hyperformix Launches Capacity Manager 5.0 II-31
Brocade Launches Brocade FX8-24 Extension Blade and Brocade
FCoE 10-24 Blade II-32
Oracle Launches Oracle VM 2.2 II-32
VMware Unveils vCenter Server Heartbeat II-33
Sun Microsystems Launches Virtualization Solutions for Medium
and Small-Sized Enterprises II-34
Sun Microsystems Launches New VirtualBox with Enhanced
Virtualization Features II-34
Red Hat Unveils Red Hat Enterprise Virtualization for Servers II-34
Oracle Unveils Siebel CRM-based Oracle® VM Template II-35
IBM Launches Novel System Software to Maintain and Build Data
Centers II-35
Citrix Systems Introduces Citrix XenServerTM 5.5 II-36
Sun Microsystems Introduces X4450 and X6450 Servers II-36
Parallels Introduces Virtualization Server II-37
Symantec Launches Veritas Virtual Infrastructure II-37
Sun Microsystems Unveils Sun xVM II-38
Parallels Launches Virtuozzo Containers 4.0 II-38
Citrix Systems Unveils Citrix® XenServer 5 II-38
Microsoft Unveils Release Candidate of Microsoft Hyper-V II-39
Citrix Systems Launches Citrix XenServer and Citrix XenServer 4.1 II-39
Red Hat Unveils Virtualization Capabilities II-40
Sun Microsystems Introduces Novel Intel Xeon-based servers II-40
Sun Microsystems Introduces Sun xVM Server software and Sun
xVM Ops Center 2.0 II-41
HP Launches HP ProLiant iVirtualization II-42

4. RECENT INDUSTRY ACTIVITY II-43
IBM to Takeover BLADE Network Technologies II-43
HP to Takeover 3PAR II-43
VMware Takes Over TriCipher and Integrien II-44
Citrix Takes Over VMLogix II-44
Quest Announces its Acquisition of Surgient II-44
Dell Enters into Agreement To Buy Scalent Systems, Inc. II-45
Violin Memory Takes Over Gear6 Assets II-45
Arrow Enterprise Computing Solutions & IBM Czech Republic Sign
Distribution Agreement II-45
Host Europe Takes Over Virtualization Firm Vanager II-45
VMware to Acquire Ionix IT Management Business of EMC II-46
Cavalier Announces Take Over of NET Telcos II-47
Xigent Solutions Takes Over Xcedex's Professional Services
Division II-47
Novell & VMware Extend their Collaboration to Deliver SUSE®
Linux Enterprise Server for VMware vSphere™ Environments II-47
3PAR Expands Cloud Support with Red Hat Server Virtualization II-48
3PAR Extends Partnership with Citrix II-48
Lanamark and Oracle Collaborate II-48
VMware Acquires SpringSource II-48
Widearea Systems Announces Its Acquisition of NYTOR Technologies II-49
CISCO and EMC To Enter into Partnership II-49
Microsoft Enters into Alliance with Citrix Systems II-50
Oracle Acquires Virtual Iron II-50
Lanamark Inks Agreement with InterAct II-50
Citrix Systems Enters into Collaboration with SignaCert II-50
Lanamark Enters into Partnership with Avnet Technology Solutions II-51
Zurich Financial Services Selects CSC for IT Services Contract II-51
Taco Chooses Syncsorts BEX II-51
U21Global Deploys Red Hat Enterprise Linux 5 Virtualization
Technology II-52
VMware Signs Agreement with Lenovo II-52
Red Hat and Microsoft Corporation Ink an Agreement II-53
Red Hat Collaborates With Cisco II-53
Red Hat and HP Extend Collaboration II-53
Sun Microsystems and HP Extend Partnership Agreement II-54
Citrix Systems Enters into Alliance with Microsoft Corporation II-54
VessRAID Bags VMware Certification II-54
VMware Purchase Foedus II-55
CohesiveFT Collaborates with Virtual Iron II-55
Symantec to Participate VMware Alliance Affiliate Initiative II-55
Novell and Microsoft Collaborates for Virtualization Solution II-55
Emulex Participates in VMware Alliance Affiliate Initiative II-56
Alternative Technology Signs an Agreement with Marathon
Technology II-56
3Leaf Systems Chooses DDR Memory Controller by Virage Logic II-56
Citrix Systems Enters into Partnership with NetApp II-57
AMD Enters into Collaboration with Microsoft for Windows
Server 2008 II-57
FalconStor Software Enters into Collaboration with Virtual Iron II-57
Citrix Systems Extends Collaboration with Microsoft II-58
Microsoft Purchases Calista Technologies II-58
Sun Microsystems to Purchase innotek II-58
Sun Microsystems to Purchase Parallels II-59
Novell Acquires PlateSpin II-59
INX Takes Over AccessFlow II-59
HP to Take Over LeftHand Networks II-59
Sun Microsystems Extends Cross-Platform Virtualization
Alliance with Microsoft II-60
Citrix Systems Collaborates with Intel and HP II-60
Intel Takes Over Assets of NetEffect II-60
Citrix Systems and HP Sign an Agreement II-61
Lenovo and Citrix Systems Sign an OEM Agreement II-61
VMware Enters Into an Agreement with HP II-61
Avnet Technology Solutions Enters into Partnership with Novell II-62
Sun Microsystems Enters into an Agreement with VMware II-62

5. FOCUS ON SELECT GLOBAL PLAYERS II-63
Citrix Systems, Inc., (USA) II-63
Dell, Inc. (US) II-63
Hewlett-Packard Development Company (US) II-63
International Business Machines Corporation (USA) II-64
Microsoft Corporation, (USA) II-64
Oracle Corporation (USA) II-64
Parallels, Inc., (USA) II-65
Proxmox Server Solutions GmbH (Austria) II-65
Red Hat, Inc., (USA) II-65
VMWARE, Inc., (USA) II-66

6. GLOBAL MARKET PERSPECTIVE II-67
Table 11: World Recent Past, Current & Future Analysis for
Server Virtualization Software by Host Operating System -
Windows, Linux & Other Open Source and Others Independently
Analyzed with Annual Sales in US$ Million for Years 2006
through 2015 (includes corresponding Graph/Chart) II-67

Table 12: World 10-Year Perspective for Server Virtualization
Software by Host Operating System - Percentage Breakdown of
Annual Sales for Windows, Linux & Other Open Source and Other
Markets for Years 2006, 2009 & 2015 (includes corresponding
Graph/Chart) II-68

III. COMPETITIVE LANDSCAPE

Total Companies Profiled: 35 (including Divisions/Subsidiaries - 37)

---------
Region/Country Players
---------
The United States 32
Canada 1
Europe 2
The United Kingdom 1
Rest of Europe 1
Asia-Pacific (Excluding Japan) 2
---------

Server virtualization has been for long championing the virtualization drive in Enterprise IT. Against the backdrop of growing clamor for energy saving technologies such as Software-as-a-Service (SaaS), Green IT and Service-oriented architecture (SOA), server virtualization has become a key strategy within the much bigger virtualization portfolio that enables such emerging technologies. Not surprisingly, the last few years have witnessed an increased momentum towards server virtualization.

Growth in the server virtualization software market has traditionally been driven by the need to tap several cost benefits associated with server consolidation. Thanks to server virtualization, IT departments across the world are now able to consolidate multiple servers as virtual machines into a single physical box, and in the process, ensure more effective utilization of available hardware and reduction in the number of physical servers, which automatically generates substantial cost savings. Growth in the Server Virtualization Software market over the next few years will be driven by the growing attention of the enterprise towards achieving key objectives such as ensuring business continuity, reducing unscheduled IT downtimes and enhancing business agility, and waxing popularity of server virtualization software as a key to achieve them. The increased deployment of Cloud Computing strategies will also transform server virtualization into a “default” technology at an enterprise level over the next few years.

As stated by the new market research report on Server Virtualization Software, by host operating system, the Windows OS Server Virtualization Software market is the largest and the fastest growing segment within the overall server virtualization market, having accounted for a share of about 46.74% in the total revenue generated in 2009, followed by Linux & Other Open Source OS Server Virtualization Software market, which represented a share of about 38.63%.

Key players in the global market include Citrix Systems Inc., Dell Inc., Hewlett-Packard Development Company, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Parallels Inc., Proxmox Server Solutions GmbH, Red Hat Inc., and VMWARE Inc., among others.

© Global Industry Analysts, Inc

- Citrix Systems Inc.
- Dell Inc.
- Hewlett-Packard Development Company
- International Business Machines Corporation
- Microsoft Corporation
- Oracle Corporation
- Parallels Inc.
- Proxmox Server Solutions GmbH
- Red Hat Inc.
- VMWARE Inc.