Server Virtualization Market To Grow At A CAGR Of 7% due to Rising Adoption of Cost-Effective Web Hosting Services

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Server virtualization is a method that involves splitting a physical server into small virtual servers with the help of specific software.

The Global Server Virtualization Market was valued at US$ xx million in the year 2018 and is expected to reach US$ xx million by the year 2023, growing at a CAGR of approximately 7%.

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Server virtualization is defined as the masking of server resources. It includes the identity of each physical server, operating systems from the server users. A typical enterprise data center contains a massive number of servers. Most of the servers remain idle if the workload is not properly distributed among the servers, which results in a waste of expensive hardware resources, maintenance, cooling requirements, and power. Server virtualization gives the platform for each virtual server to look and act like a physical server and to bear the capacity of every single physical machine.

The main factors for driving the growth of the global server virtualization market are the rising adoption of cost-effective web hosting services. However, the high operational cost for maintaining the robust infrastructure required for server virtualization is expected to impede the market growth.

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According to the type of virtualization, the market is segmented into para-virtualization, full virtualization, and OS-level virtualization. Among these, the full virtualization segment is likely to grow during the forecast period, owing to the reduction in overall storage space and the overall operation cost.

Based on deployment, the market is segmented into cloud and on-premise. Among these, cloud deployment holds a dominating share in the market, owing to the less cost of infrastructure that leads to lesser cost of operation.

Based on organization size, the market is segmented into large enterprises and small and medium enterprises (SMEs). Among these, the small and medium enterprises sub-segment holds a dominating share in the market, owing to the adoption of cost-saving business model of this organization vertical.

Based on the end-user industry, the market is segmented into IT & Telecommunication, Healthcare, BFSI, Transportation & Logistics, and Others. Among these, IT & Telecommunication is holding a dominating share in the market owing to the increasing demand for IT infrastructure and the need for virtualization in this industry vertical.

North America holds a dominating position owing to the presence of most of the server virtualization vendors in this region. The Asia-Pacific region is expected to grow with the highest CAGR over the forecast period. Remarkable growth opportunities are observed in this region, owing to the increasing IT infrastructure in this region.

The key players in the global server virtualization market are VMware Inc. (US), Oracle Corporation (US), Red Hat Inc. (US), Amazon.Com Inc. (US), Microsoft Corporation (US), Citrix Systems Inc. (US), Huawei Technologies Co. Ltd. (China), Google Inc. (US), IBM (US), and Odin Inc. (US), amongst others.

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