Microsoft already took 23% of virtualization market says IDC – UPDATED

Posted by virtualization.info Staff   |   Thursday, October 16th, 2008   |  

idc logo

Today the analysis firm IDC released some surprising numbers about virtualization vendors market share:

  • VMware: 44% (combining ESX and Server)
  • Microsoft: 23% (combining Hyper-V and Virtual Server)

Isn’t clear how much of these market shares translates in production deployments and how much is about test & development or shelfware, but one thing is for sure: the Microsoft gain is remarkable (and its growing case studies library confirms it) even if VMware still leads with 78% revenue share.

Besides the numbers above there is something else that is interesting: worldwide virtualization license shipments in the second quarter of 2008 (2Q08) increased 53% year over year, compared to a 72% year-over-year increase the previous quarter.

Who ships more servers for virtualization duties? HP (34% market share) followed by Dell (25%) and IBM (16%).

Update: Easy to guess the report above generated a huge number of reactions (and complains from VMware).

Specifically IDC is questioned on several obscure points:

  • In its previous report about virtualization market shares, about Q1 2008, IDC assigned 20% to Microsoft.
    Hyper-V was formally released on June 26, 2008, which is two days before the end of Q2. So it seems unlikely that Hyper-V could get 3% in just two business days.
    As some virtualization.info pointed in the comments it’s very likely that IDC included in this count also beta and RC deployments. If so the numbers couldn’t reflect the real state of the market because VMware tents to keep ESX betas private (like for the upcoming ESX 4.0).
  • Unlike the past, this time IDC didn’t compare its findings with VMware and refused to break out the reported numbers for each product.
  • There’s an incongruence between the VMware estimated year over year growth (52%) and the real one reported by VMware to the SEC (39%) for the Q2 2008.

For all these reasons we expect an official statement from IDC clarifying the methodology that provided the market shares.

Meanwhile it’s worthwhile to answer a question that Mike DiPetrillo raised in the comments: why a 23% market share for Microsoft should be considered remarkable? The answer we can give:

  • Because it didn’t go lower despite ESX 3.5 Update 2 introduced a huge advantage in terms of features and most VMware efforts in marketing is focused on highlighting such difference
  • Because one would assume (maybe incorrectly) that customers started to dismiss Virtual Server in the last few months. In such case Hyper-V may have some more than 3% market share.


blog comments powered by Disqus


virtualization.info Newest articles
Docker releases Docker Security Scanning

May 12th, 2016

Containers’ security is one of the emerging topics in those companies moving this technology into production. A few small players emerged to compete exclusively in this portion of the…

RightScale announces Docker Container Management

May 3rd, 2016

RightScale is a Santa Barbara, CA based company, provider of a Software as a Service (SaaS) management solution that so far only supported standard Infrastructure as a Service (IaaS) cloud…

Release: WinDocks 1.0

April 5th, 2016

Yesterday, Bellevue (WA) based company WinDocks, released version 1.0 of its homonymous Docker engine for Windows.
The company, founded by a small group of former Microsoft’s employees, rides Docker’s…

LANDesk Acquires AppSense

March 17th, 2016

LANDesk Software, founded in 1985 and headquartered in Salt Lake City, Utah , provides systems management, security management, service management, asset management and process management solutions with a strong focus…

Release: Red Hat Enterprise Virtualization 3.6

March 15th, 2016

Last week open source giant Red Hat announced the availability of version 3.6 of its KVM-based virtualization platform Red Hat Enterprise Virtualization (RHEV).
While this new release provides the expected…

Docker acquires Conductant

March 4th, 2016

Yesterday Docker announced to have acquired a semi-stealth startup called Conductant, focused on workloads orchestration.

Both Conductant’s founders, Bill Farner and David Chung, have significant enterprise experience coming from…

Cisco acquires CliQr

March 1st, 2016

Today Cisco announced the intent to acquire CliQr Technologies Inc., a privately held company based in San Jose, CA.
CliQr is one of the most promising startups in the Cloud…

Release: VMware vCloud Suite 7 and vRealize Suite 7

February 11th, 2016

Yesterday VMware announced version 7 of both its vCloud and vRealize suites, confirming its efforts to be relevant in the CMPs (Cloud Management Platforms) space.
vRealize Suite 7 is made…

Platform9 adds Multi-Region & Multi-Hypervisor management into Managed OpenStack

February 11th, 2016

Platform9 solutions leverages a mix of SaaS and on premises Virtual Appliance to provide into supported environments capabilities typical of Cloud Management Platforms (CMPs) such self-service provisioning, monitoring, configuration…

VMware announces vRealize Log Insight 3.3

February 10th, 2016

Log Insight is a log aggregation, management and analisys tool, that VMware first introduced in 2013 and now is fiercely competing against Splunk.
Today the company announced Log Insight 3.3…

Microsoft releases Azure Stack TP1

February 1st, 2016

During Ignite 2015, back in September, Microsoft announced Microsoft Azure Stack as the building block for its hybrid cloud strategy.
What Microsoft is saying with this move is that, despite…

Release: Ansible 2.0

January 14th, 2016

Ansible is an IT automation tool especially popular within the developers’ community, thanks to its simplicity and agentless nature.
Three months away from its acquisition by Red Hat the company announced…

Nutanix goes Public

December 23rd, 2015

Nutanix is a provider of converged infrastructure, basically a physical server containing both compute and storage driven by an Installed Hypervisor of choice, this server, called a node can…

Release: VMware vRealize Automation 7 and VMware vRealize Business Standard 7

December 23rd, 2015

Last week VMware finally completed the first major update of VMware vRealize Suite, its well known cloud management solution, releasing in GA both vRealize Automation 7 and vRealize Business Standard…

 
Monthly Archive