Microsoft narrows gap with VMware

Hyper-V makes good showing in first months of availability, IDC says

VMware is holding onto its market-share lead in the x86 virtualization market but Microsoft is making a strong push with Hyper-V, IDC statistics show.

In the second quarter of 2008, VMware's virtualization revenue market share was 78 percent, down from 86 percent in the previous year's second quarter and identical to its share in this year's first quarter. Meanwhile, VMware's share of new shipments was 44 percent in the second quarter, down from 51 percent the previous year but up from 42 percent in the first quarter of 2008.

Microsoft captured 23 percent of new shipments with Hyper-V and Virtual Server 2005, up from 20 percent last year and from 18 percent in this year's first quarter. But Microsoft's revenue share is a paltry 1.1 percent of the x86 market, says IDC analyst Brett Waldman, who notes that the second quarter was the first in which Microsoft shipped a paid product.

Parallels' Virtuozzo product secured 16% of the second-quarter revenue, good for second place behind VMware, Waldman said.

VMware, despite losing some of its industry-leading market share, enjoyed year-over-year revenue growth of 27 percent. That's indicative of the healthy gains made throughout the virtualization market. Worldwide, second-quarter virtualization license shipments rose 53 percent over the previous year, IDC says in a quarterly virtualization market share update.

The rate of growth is slowing, however. In the first quarter IDC observed 72 percent year-over-year growth. Second-quarter revenue growth was 15 percent, compared to 32 percent in the first quarter.

"The modest decline in growth rates indicates that the market is showing early signs of maturation," Waldman said in a press release. "Based on our conversations with end users, IDC believes that the high-volume consolidation opportunities -- the low-hanging fruit in the x86 server virtualization market -- is starting to dry up. This is, in turn, resulting in smaller deals overall." To keep growing, hypervisor vendors will have to target new customer segments, such as midsize companies, IDC says.

Join the PC World newsletter!

Error: Please check your email address.

Tags MicrosoftVMware

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jon Brodkin

Network World
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?