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
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…

WhatMatrix.com goes Live

December 15th, 2015

virtualization.info has been following Virtualization Matrix since its early steps and we recently wrote about its crowdsourced-powered heir: WhatMatrix.
Today we are happy to report that its community, formed…

Microsoft loves Red Hat: The business implications

November 18th, 2015

As you may have heard, Microsoft recently announced its “historical” partnership with Red Hat, something that a number of analysts already claimed as a milestone for both companies but especially for…

Red Hat acquires Ansible

October 16th, 2015

Today Red Hat announced that it has signed a definitive agreement to acquire Ansible, provider of an IT automation tool popular especially within the developers’ community.
The acquisition is rumored…

Dell acquires EMC, owner of VMware and Pivotal

October 12th, 2015

Dell today announced that it signed a definitive agreement to acquire EMC Corporation for a total of $67 billion, making it the largest ever acquisition in the technology industry so…

Red Hat announces earnings for Q2 2015

October 2nd, 2015

Red Hat announced its financial results for the second quarter of fiscal year 2016.
Total revenue for the second quarter ended Augus 31, 2015 was $504 million, with an increase…

Citrix retires XenClient

September 21st, 2015

Citrix on its website announced that it started the End-of-Life process of Citrix XenClient Enterprise, the end of life date will be December 12, 2016.
XenClient consists of two technologies,…

Release: Altaro VM Backup V6

September 9th, 2015

Altaro Software, company specialized in backup for virtualized environments, specifically Microsoft Hyper-V, announced the release of Altaro VM Backup, previously known as Altaro Hyper-V Backup, rebranded to introduce VMware…

 
Monthly Archive