A special IDC study
Doc #SR03P, April 2007

Introduction

This study is intended to help hardware, software, services, and peripheral vendors identify, prepare for and understand customer IT buying patterns and behaviors associated with server virtualization. This study is based on the results of comprehensive surveys that IDC recently completed with 102 European end-users from France, Italy, Germany, Sweden, and the U.K.

Virtual server technology has been a feature of IT systems for a very long time, having started in the mainframe datacenter as a way to create logical partitions within a large computing resource so that each partition could run a specific workload without interfering with the others. Over time, other types of servers became known for their ability to support virtualization of various types: clustering, launching virtual machines to support logical partitions within a physical server, and isolating applications so that they do not interfere with one another.

In the server world, scalable datacenter servers have supported virtualization for years, with examples such as the IBM OS/390 mainframe, mainframes made by other vendors (Unisys, NEC, Hitachi, and the Fujitsu Group of companies), and the IBM iSeries (formerly AS/400). Given the maturity of the mainframe and iSeries platforms, the virtualization activities on these systems is well understood and is consequently a smaller part of the sample for this study.

The focus of this research is on more recent server virtualization activities for Unix servers (most often Unix/RISC servers from HP, Sun, IBM, Fujitsu, and others), x86 servers, and EPIC (Itanium-based) server systems running a variety of operating environments. IDC knows from its supply-side research that scalable RISC-based systems and x86 servers account for the majority of factory revenue and unit shipments worldwide. Consequently, the phenomenon of virtualization as it is seen on those types of server platforms is expected to have a significant impact on the worldwide server market.

Overall, IDC anticipates the number of virtualized servers to grow by a CAGR of 55% to 1.1 million shipments in 2011, representing 52% of the forecasted 2,197,000 server shipments for that period. This will be equivalent to 5.4 million logical servers (i.e. partitions deployed in 2011). IDC forecasts customer revenue from virtualized server sales in Western Europe will grow from $948 millions in 2006 to $5.5 billion in 2011, corresponding to a 41% five year CAGR. Overall, it anticipates the server and software virtualization opportunity in Western Europe to grow at 38% CAGR from a current $1.1 billion combined revenue to $5.9 billion in 2011.

Objectives

This study presents and analyzes the results of a quantitative survey focusing on server virtualization adoption trends with 102 European IT users. The research objectives are threefold:

• Research and profile the type of European organizations that are currently deploying server virtualization.
• Identify the market opportunity for server virtualization technology in order to assist European enterprise system vendors in aligning their business models with European customer requirements.
• Investigate both scale-out and scale-up server partitioning strategies and infer the implications for future developments of European datacenters and infrastructure spending.

This study also provides an overall Western European forecast for the following:

• Virtualized server shipments and the corresponding logical servers (partitions) for 2006–2011
• Western Europe virtual server dollar opportunity for servers and virtualization software licenses, 2006–2011

Methodology

The European Server Virtualization Trends 2006 special study (Doc #SR03P, April 2007) is based on a survey conducted through telephone interviews with 102 European IT Directors and managers that have implemented server virtualization within their organizations. All of the interviews were carried out by IDC's CATI facility in Poland from September to October 2006.

The research objectives of this survey were threefold:

• Profile the European organizations, which are currently deploying server virtualization.
• Size the market opportunity from large-scale adoption of server partitioning strategies
• Infer the implications for future developments of European data centers and infrastructure spending.

The questionnaire aimed to characterize many aspects of respondents' current server environments and server virtualization endeavors, including:

• Server inventory (virtual and non-virtual servers)
• Virtual server software
• Workloads, partitioning software, management software
• Virtual server hardware characteristics
• Vendor perceptions
• Drivers/inhibitors
• Virtual server purchase process
• Demographics

Additionally, 148 surveys were completed with "non qualified" respondents with the following objectives in mind:

• Ensured familiarity with server virtualization concept
• Tested for plans to implement virtual servers
• Primary reason for NOT virtualizing servers

Further Information

For a list of contents and figures within this study or to purchase the study online, please click through the following link: Doc #SR03P, April 2007

Alternatively email tcummings@idc.com or contact your local IDC office.

Virtualisation in EMEA, Live Web Briefing 18th May 2007

IDC will be hosting a complimentary web briefing addressing ICT virtualisation issues within EMEA on Friday 18th May at 2.30PM UK Time (3.30PM CET). To receive call in details for this event please email tcummings@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.