Virtual servers to generate $15 bln by 2009

Virtual servers translate to real dollars as spending around virtualization activities will balloon to nearly $15 bln worldwide by 2009. According to IDC, a disruptive change is at hand as customers rapidly adopt virtualized servers – partitioning of smaller 2-4 way x86 systems using software developed specifically for the volume server space – in an attempt to contain costs, leverage existing IT resources, and seamlessly handle growing workloads. IDC estimates that more than three-quarters of all companies with 500+ employees are deploying virtual servers.

45% of new servers purchased 2006 will be virtualized. More than 50% of all virtual servers are running production-level applications, including the most business critical workloads. There is significant opportunity to optimize virtual server performance based on the types of server workloads. In terms of revenue, S390, OS400 and Unix systems account for the bulk of customer spending on virtualized servers today, however, rapid growth is occurring on Windows and Linux servers.