Virtualisation market booms as cloud expands

The expansion of cloud computing has led to significant growth in the virtualisation market, according to a report by IDC.

In the latest Worldwide Quarterly Server Virtualisation Tracker, IDC discovered that 19.4 per cent of all new servers shipped in the last quarter of 2010 were virtualised, up from 18.4 per cent for the same quarter a year ago.

Some 398,617 virtualised servers were shipped in the final three months of 2010, with much of the one per cent growth in shipments coming from emerging regions.

Virtualised server shipments declined by four per cent in 2009 compared to 2008, making this recovery particularly significant. In comparison, year-over-year growth for this sector was 28 per cent in 2010.

End user spending for virtualised servers was also up in the fourth quarter - by 23.3 per cent - and increased by 13.5 per cent over the entire year. This brought in $16.8 billion during 2010.

Global virtualisation software revenue was up by 36 per cent for the last quarter of 2010, bringing in $877 million. Licences for virtualisation were also up by 13 per cent for the final quarter and 32 per cent for the full year.

HP dominated the sector, with a 43 per cent market share, an increase of 22 per cent on 2009. Dell was in second place with a share of 26 per cent, a nine per cent jump on the year prior. IBM followed in third with 15 per cent, up 12 per cent on the final quarter of 2009.

“The hype of cloud computing was all the rage in 2010,” said Brett Waldman, senior research analyst for Software Appliances and Virtualisation at IDC. “But it is the foundation of virtualisation that makes it all possible. Combined with the economic recovery, the drive to pave the way towards creating cloud computing environments gave rise to a very successful year in virtualisation implementations.”