Virtualization on upswing in Europe, VMware lead shrinks

Led by Western Europe, the Europe, Middle East Africa (EMEA) region saw higher adoption of server virtualization in the last quarter of 2009, says IDC. The competition among vendors also intensified and market leader VMware’s lead shrunk a little in the same period.

IDC's EMEA quarterly Server Virtualization Tracker is helpful in comparing performance of virtualization market between last quarters of 2009 and 2008.

Virtualization adoption rose in Western Europe. 20.2% of new servers shipped to Western Europe in fourth quarter of 2009 were virtualized compared to 19.3% a year ago.

In the entire EMEA region.  17.7% of all new servers shipped in EMEA were virtualized, an increase from 16.31% in fourth quarter of 2008. EMEA virtualization software revenue also increased by 3.9% and touched $158 million.

"The availability of CPU upgrades and corporate mandates for their IT infrastructure to go 'virtual' prompted many organizations to initiate long delayed technology refreshes,” said  Nathaniel Martinez a program director at IDC, explaining the upturn.

"Server virtualization has become the default build for new application deployments, and server refreshes among many European organizations, and this is having a profound impact on IT infrastructure directions,” he added.

The growing Virtualization market is also seeing increasing competition between vendors.

VMware’s revenue decreased 1.8% year over year and the market leader also saw overall virtualization license shipments decline 3% over the same period. Microsoft’s virtualization license shipments increased 37.7% year over year. But Citrix’s XenServer grew by a whopping 355% year over year due to the company offering the product free.

But the EMEA server virtualization market continues to shift towards the use of paid hypervisors, with paid virtualization software now running on 71.7% of all new virtual servers.

Arun Mysore

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