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01/22/2007

Demand for Increased IT Efficiency Drives Worldwide Server Virtualization Adoption, IDC Says

FRAMINGHAM, MA – JANUARY 22, 2007 – The need for organizations to maximize IT resources and adapt quickly to business change is driving worldwide server virtualization adoption. According to new research from IDC, more than 15% of new server shipments will undergo virtualization in 2010, up from 5% in 2005.

"Given the rate of adoption, virtualization has many implications for change control processes, chargeback mechanisms, SLAs, business case development, staffing levels and staffing competencies," said Michelle Bailey, research vice president for IDC's Enterprise Platforms and Datacenter Trends. "Customers do not typically incorporate all of these changes immediately, rather they address them in defined stages as their experience grows and as corporate culture accepts this shared resource mode." The shared research model can help IT buyers understand where they fit in the current server virtualization marketplace, how far they can potentially drive this technology and where their organization should ideally aim. It also helps IT vendors target their marketing and communications efforts to customers in different phases of virtualization adoption.

Highlights from this study:

— While early server virtualization adoption was due to consolidation and migration of projects, new drivers for virtualization includes availability solutions and disaster recovery programs

— Automation is expected to play a strong role in managing virtualization resources in the next 18 months, as customers evaluate more sophisticated management tools

— Industry impacts of virtualization are becoming evident with an increase in the penetration of 4-way systems and customers choosing more richly configured systems

IDC's Server Virtualization Maturity Index (IDC #204893) outlines the typical evolution for an enterprise virtualization strategy and highlights the changes customers can expect within their organization as they move forward.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@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. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 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 .

All product and company names may be trademarks or registered trademarks of their respective holders.

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