Microsoft: The virtualization market, still immature

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Microsoft sees significant growth opportunities for the company and its partners, estimating that only 15% of servers have been virtualized so far.

The virtualization market is relatively immature, with a potential of 30% virtualization in the next 5 years, according to Microsoft’s Desmond Nair.

A recent report by Gartner projected that Microsoft’s share of installed virtual machine software would increase to 29 percent by the end of 2012, from 8 percent at the end of last year.

“People are increasingly using virtualisation to deliver lower costs and reduced risks – it’s moved from being a tactical technology towards a key transformation strategy, and helps companies respond more rapidly to the volatile market conditions we have today,” said Inobits director Hud Krause.


Chris Welham, executive director at SAT, admits virtualization is an important role player in their clients business strategy. Both Inobits and Space Age Technologies (SAT) are South African managed services providers utilizing Microsoft’s Hyper-V virtualization tool.

SAT recently implemented Microsoft’s virtualization for Reutech Radar systems, reducing the number of servers needed from 17 to 6 and thus saving an estimated capital expenditure of more than R550,000. In addition to that, Reutech is saving more than R60 000 per year in running costs and power usage, added Welham.

Besides running IT infrastructure with fewer machines and using less energy and space, cutting costs in the data centers, the IT companies report flexibility and disaster recovery capabilities for their clients as major pluses of virtualization.

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