The Global Server Virtualization Market was valued at USD 7.1 Bn in 2020 and is expected to reach USD 10.8 Bn by 2027, with a growing CAGR of 6.2% during the forecast period (2021-2027).
Server virtualization is referred to the process of dividing a physical server into multiple unique and isolated virtual servers with the help of a software application. With server virtualization, each virtual server can run its operating system. Every virtual machine is called a guest virtual machine which is installed, executed, and hosted on a local physical machine.
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Global Server Virtualization Market Dynamics
Server virtualization is a cost-effective option to provide web hosting services utilizing existing resources in IT infrastructure, the global server virtualization market is estimated to mark rapid growth during the forecast period. Before the server virtualization technology, the servers utilized only on some part of the system's potential processing power which led to the idle servers as the workload is distributed only to a portion of the network server. To save the wastage of resources and powers, server virtualization technology is majorly utilized and thus driving the market
The global server virtualization is further estimated to witness significant growth owing to the advancements and the increased investments by the major server virtualization market vendors such as VMware, Microsoft, Google, and Oracle among others. For instance, in October 2021, VMware stretched the VMware ESXi, an enterprise-class, type-1 hypervisor developed by VMware to be a disaggregated memory hypervisor. The disaggregated memory hypervisor is expected to provide advantages such as maximum flexibility, maximizing storage utilization, avoiding creating multiple islands of software-defined storage, enabling cloud-like economics, choosing the correct CPU for the workload, and updating storage & computing independently.
Global Server Virtualization Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the server virtualization market are:
Based on type, the OS virtualization type segment is expected to expand at a highest growth rate during the forecast period owing to increasing benefits provided by OS virtualization
Based on type, the global server virtualization market is segmented into hypervisor, para virtualization, full virtualization, hardware assisted virtualization, kernel level virtualization, OS virtualization. Amongst all, the OS virtualization held the majority market shares. OS virtualization refers to the operating system virtualization and involves altering a standard operating system to run different applications handled by multiple users on a single computer at a time. The OS virtualization segment is estimated to grow with a CAGR of 5.6% during the forecast period. For instance, in September 2021, Google LLC announced an extension of its Chrome Enterprise Recommended partner program to apply the Chrome Operating System (OS) in contact centers. The extension is expected to provide various advantages such as providing validated contact-center solutions, secure platform, and remote management, access to virtualization desktop infrastructure, and advanced peripheral and device.
Based on the deployment, the cloud segment accounted for the largest market share in the overall server virtualization market size in 2020 owing to advantages provided by cloud technology
Amongst on-premise and cloud deployment models, the cloud segment is estimated to hold the dominant market share throughout the forecast period. The scalability and flexibility of cloud technology are majorly propelling market growth. Moreover, the pay-as-you-go or pay-as-per-use model is boosting up the adoption of cloud deployment models in various end-user industries.
Based on region, the market for server virtualization in North America accounted for the largest share in 2020
Geographically, North America is evaluated as the largest regional market share in the year 2020 and is also expected to witness a significant growth rate during the forecast period owing to the huge presence of technologically advanced infrastructure and need to maximise the server potential usage. According to the article published by Forrester, a research and advisory company, server virtualization adoption has accelerated in North America. The increasing need to use the maximum of the server potential with the virtualization of the servers is increasing the demand for the client.
The report also provides an in-depth analysis of server virtualization market dynamics such as drivers, restraints opportunities and challenges
Drivers
Restraints
Opportunities
Note: Challenges along with in-depth market dynamics analysis are mentioned in the report. Speak with our Analyst
COVID-19 Impact on the Server Virtualization Market Analysis
The server virtualization market has been greatly affected by the Covid-19 outbreak owing to the fallouts and increased trend of employees and customers to reside indoors has increased the demand for server virtualization. The rise in the digital transformation of companies and organizations along with remote working models is estimated to drive the market size during the forecast period. Additionally, the digitalization of the supply chain, the telehealth conditions, and increased integration of blockchain technology are providing lucrative market growth opportunities to the server virtualization market.
The report also provides an in-depth analysis of key trends in the server virtualization market
| Sr. No. | Trends | Impact |
| 1 | The increasing green IT strategy or green computing in various end-user industries is driving the server virtualization market growth | Positive |
| 2 | The increasing adoption of the hyper-converged infrastructure is propelling the server virtualization market growth | Positive |
| 3 | The rising adoption of Software-Defined Data Center (SDDC) solutions is boosting the server virtualization market during the forecast period | Positive |
The report also provides an in-depth analysis of recent news developments and investments
The unique insight provided by this report also includes the following:
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