Virtualization Technology Moves Forward As New Year Begins

Virtualization Technology Moves Forward As New Year Begins

January 5, 2011

The new year is starting off well for VMware, which saw its stock jump to a new 52-week high of $94.19 Monday. It then dipped a bit to close at $92.97, which is approximately 4.6 percent higher than its previous closing price, reported.

Virtualization, along with cloud computing, had a banner 2010. In an economic climate that was brutal and unforgiving, both technologies chugged along with nary a derailment or serious argument as to their value. In fact, most IT companies, from OEMs to ISVs to anyone in between, attempted to get in on the action. Acquisitions, new products, and products updates swung heavily in this direction.

This is not a market segment that will be slowing down any time soon. For enterprises, the low hanging fruit that delivers significant cost savings is too sweet to ignore. For vendors, the opportunities are are too rich to not pursue. This, of course, means the competition is constantly increasing.

VMware's record breaking stock price is yet one more indicator that the company is not way slowing down; nor is it sharing center stage in the Virtualization theater that many had anticipated.

So what's in store for the new year?

To some degree, more of the same. More companies are moving to the cloud; more development is taking place in the cloud. More companies are deploying virtualization and more virtualized components within enterprises. Much has been said about how small businesses are embracing virtualization whether in its traditional form, or, for those short on IT skills, going to the cloud or opting for a virtual appliance.

Little up until now has been said about midsize enterprises, however. Midsize enterprises are not larger small businesses, and OEMs and others are quickly recognizing this.

Client virtualization also appears poised to win big in the new year. Virtualization has moved out of the data center to the desktop and has begun its journey outside of the constraints of the enterprise to mobile devices.

Desktop virtualization may be the big winner this year though. While desktop virtualization offers many benefits similar to server virtualization, the initial investment is steeper and the low-hanging fruit less, umm, fruitful.

A CDW survey conducted in September 2010 surveyed 200 IT managers at medium and large businesses about their plans for client virtualization and how they are planning to use it. The survey found 90 percent of participants were considering or implementing at least one form of client virtualization. However, results indicate that much like early adopters of server virtualization, many organizations are underestimating the complexity of client virtualization deployment, as 97 percent of respondents said they experienced challenges with implementation, including ensuring the technology will work on an individual level, estimating ROI, and training end users to adopt the technology.

Of those considering or implementing client virtualization, 91 percent (or 82 percent of all respondents) plan to implement within the next 12 to 24 months. In addition, 37 percent have completed an up-front inventory analysis of client devices in preparation for implementation.

Interestingly, 59 percent of businesses said their client virtualization goals are equally or more important than their server virtualization goals. Not surprisingly, more than half say their top driver is cost reduction


Do these developments correlate to your organization's virtualization plans for 2011? Comment below and share your virtualization and cloud computing plans for the new year.

Amy Newman is the senior managing editor of's server vertical. She has been covering virtualization since 2001, and is the coauthor of Practical Virtualization Solutions, published by Pearson in 2009.

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