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Some of the Key Players in the Global Server Virtualization Market are VMware, Oracle, Red Hat, Citrix, Microsoft, Google LLC, I2K2 Networks, PCS, Huawei, and Proxmox Servers Solutions GmbH.

Pune, Feb. 22, 2021 (GLOBE NEWSWIRE) — Global Server Virtualization Market Overview
The global server virtualization market size can reach USD 9.90 Billion by 2026, according to the latest insightful report by Market Research Future (MRFR). It can register 6.22% CAGR over the forecast period (2020-2026). Server virtualization is the partition of servers into smaller virtual servers for computing, storage, and management of resources. It can improve utilization of systems and reduce hardware expenditure.

The demand for server-defined data center (SDDC) due to extensive scope of virtualization from computing and storage to networking of resources is likely to drive the market growth. It provides a centralized control center for management of all resources. Automation of provisioning of resources due to its delivery speed and efficiency coupled with its ability to support legacy technology of large enterprises can offer the market a large scope of growth. This can lead to consolidation of various physical servers into a single virtual server. Shift to the cloud and work from home models are likely to drive market demand even further. Huge need for cybersecurity solutions for balancing virtual applications and servers efficiently can be new growth opportunities for the market.

But lack of technologically sound personnel and paucity of policies for creation of virtual servers for managing large data volumes can impede the market growth.

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COVID-19 Impact
The COVID-19 pandemic that has forced employees and customers to reside indoors has been fruitful for the global server virtualization market. The migration of companies to new business models owing to digital transformation is likely to drive the demand for server virtualization. Resetting of security systems, adoption of remote working models, and design of new server architecture are factors estimated to drive the market over the forecast period.

Telehealth consultations, digitization of supply chain, and integration of blockchain are indicators of the large scope for the market. Reliance on digital solutions for productivity, agility, worker re-skilling, and security are likely to attract new clients. Adoption of cloud platforms and emergence of video conferencing applications are estimated to influence organizations for investing in digital processes.

Industry Trends
Adoptions of hyper-converged infrastructure (HCI) as well as SDDC solutions are likely to drive the demand for server virtualization among large enterprises. HCI can eliminate the laborious steps in deployment of networking and storage infrastructure. The ability to scale operations virtually and lower capital investments can attract large number of clients.

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By component, it is segmented into hardware, services, and hypervisor. The hardware segment is expected to lead the market over the forecast period. It held 41.56% market share in 2019. The procurement of servers and data centers for management of resources can drive the segment demand. On the other hand, hypervisor can display the strongest growth rate owing to its capacity of allocating resources and creation of virtual machines on servers in less time.

By deployment, it is divided into on-cloud and on-premise. The on-cloud segment is estimated to garner huge demand owing to scalability and flexibility of cloud technology. Pay-as-per use business model offered by cloud service providers can facilitate its demand in the server virtualization market.

By organization size, it is segmented into large enterprises and small and medium-sized enterprises (SMEs). The SME segment is estimated to exhibit the highest growth rate over the assessment period. This is attributed to expansion plans of small firms to compete with pricing and service offerings of large enterprises.

By vertical, the global server virtualization market caters to transportation & logistics, manufacturing, healthcare, BFSI, government, and others. The government vertical is expected to be extremely lucrative for the market as better sharing of information and dissemination to the masses take prioritization. Shift to digitization and conversion of physical documents to virtual sheets can drive market demand significantly. Virtualization of data and authentication protocols set as safeguards can improve security within government servers. On the other hand, the healthcare industry is expected to embrace server virtualization for accelerating workflows, improving security, and lowering operational expenses. Flexibility of cloud and its ability to expand healthcare infrastructure can bode well for the vertical. Automation of services and cybersecurity measures can allow healthcare organizations to provide preventive solutions to patients.

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Regional Segmentation:
Geographical mapping of the server virtualization market covers namely North America, Europe, Asia Pacific (APAC), South America, and the Middle East & Africa (MEA).

North America is expected to dominate the global market owing to improved connectivity and flexible working options for employees. Presence of notable companies such as Oracle and Google are likely to drive the market’s growth over the forecast period.

APAC is deemed to be the fastest-growing region in the server virtualization market. This is attributed to conversion of physical infrastructure to virtual components and awareness of benefits of virtualization. Adoption of BYOD is likely to be one of the biggest drivers of the regional market.

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Competitive Analysis:
The server virtualization market is encompassed with new product launches and partnerships.

Key Players Involved in The Market Are:

  • Oracle
  • Proxmox Servers Solutions GmbH
  • Red Hat
  • I2K2 Networks
  • Citrix
  • Google LLC
  • Huawei
  • VMware
  • Microsoft
  • PCS

Among them, VMware is likely to capture maximum market share owing to large number of users and its ability to support popular operating systems, namely Windows and Linux. Moreover, it introduced a blockchain offering, VMware Blockchain, for organizations to build networks and decentralized applications. The use of cryptography for encrypting information and reduce duplicate messages can bode well for its clients.

Industry News
Dell will launch its EPYC “Milan” server processors based on its own server architecture, Zen 3. The processors are designed to handle virtualization workloads, virtual desktop infrastructure, and high performance computing.

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