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
Citrix announces Q4 and fiscal year 2014 results

January 30th, 2015

Citrix announced its financial results for fourth quarter and fiscal year 2014, ended December 31, 2014.
Citrix announced a total revenue for Q4 of $851 million, for an increase of 6%…

Pluribus Networks raises $50 million in Series D funding

January 29th, 2015

Pluribus Networks has announced that it has closed a $50 million Series D funding. The round was led by Temasek Holdings, an investment company based in Singapore with a…

VMware results for Q4 2014 and full year

January 28th, 2015

On January 27, VMware released the financial results for the third quarter and full year 2014.
The revenues for the fourth quarter were $1.70 billion for an increase of 15% compared…

Ravello Systems raises $28 million and announces major release of HVX

January 27th, 2015

Cloud computing startup called Ravello Systems announces to have secured $28 million funding and to have boost a total of $54 million capital led by Qualcomm Incorporated, through its…

Amazon updates AWS plugin for Microsoft System Center Virtual Machine Manager

January 22nd, 2015

In October last year, Amazon released the AWS System Manager for Microsoft System Center Virtual Machine Manager (SCVMM). AWS System Manager is an add-in for SCVMM which allows customers to…

VMware announces vCloud Air Disaster Recovery

January 22nd, 2015

VMware has announced that later this quarter it will release an updated disaster recovery solution for its IaaS solution vCloud Air (formerly vCloud Hybrid Service). The solution which will be…

Paper: Cisco Unified Computing System with VMware Horizon 6 with View and Virtual SAN

January 20th, 2015

Cisco and VMware have released a paper titled: "Cisco Unified Computing System with VMware Horizon 6 with View and Virtual SAN". The paper which contains 59 pages describes a reference…

Release: Xen Project Hypervisor 4.5

January 19th, 2015

The Xen Project, the community which develops the Xen hypervisor under the GNU General Public License (GPLv2) last week announced the availability version 4.5 of the Xen Hypervisor. With major…

Microsoft and Persistent Systems release solution for Azure IaaS data center migration

January 15th, 2015

Microsoft, together with partner Persistent Systems has developed and released a tool which helps customers to move complete Infrastructure as a Service (Iaas) deployments from one Microsoft datacenter to…

Citrix announcements from its annual Summit partner conference

January 15th, 2015

Before and during its annual Summit partner conference, held on January 13 and 14, Citrix made several announcements. First of all Citrix announced the acquisition of Sanbolic, which virtualization.info already…

Citrix announces XenServer 6.5 – UPDATED

January 13th, 2015

Citrix today announced the next version of its virtualization platform XenServer which is a commercial product based on the open-source Xen Project hypervisor. XenServer 6.5 will be the follow up…

Citrix Acquires Sanbolic

January 12th, 2015

Citrix today announced that its has completed its acquisition of Sanbolic. Sanbolic which has a product called Sanbolic Scale-Out Platform which can be seen as an aggregation of both local…

Survey: State of the VDI and SBC union 2015

January 12th, 2015

Two years ago, Project Virtual Reality Check (VRC) started a survey asking participants to provide more insight in the non-technical issues related to Virtual Desktop Infrastructure (VDI) and Server Based…

Paper: VMware Mirage 5.0 Reviewer’s Guide

January 9th, 2015

VMware has released a reviewers guide for its End User Computing solution Horizon version 5. The paper titled: "VMware Mirage 5.0 Reviewer’s Guide" contains 209 pages and allows readers to…

 
Monthly Archive