New Analyst Numbers Show Booming Virtualization Markets

How does 472% ROI sound?

The leading IT analyst firms have been documenting an encouraging trend over the past year. A recent Spiceworks survey, for example, shows that small and mid-sized businesses are increasing their IT budgets in 2011, and their demand for cloud and virtualization services will continue to accelerate. Businesses that have already virtualized will focus even more efforts on expanding virtualization.

And, according to a Forrester survey of 309 senior business and IT managers, almost 53% of enterprises and 33% of small businesses are looking to expand and upgrade their implementation of virtual servers.

Not to be outdone, Intel’s Market group report predicts that cumulative global markets for virtualization will top $290 billion dollars in the virtualization sector and $300 billion dollars in cloud computing sector (over the period from 2011 to 2016).

IDC estimates that using a simple virtualized infrastructure can result in a reduction of up to 35% of the total annual server cost per user compared to an un-virtualized static server configuration. Their data shows that companies which have deployed basic virtualization are reducing their IT costs by $145 per user over three years. Total per-user investment for these companies comes to a thrifty $24. Using IDC’s standard discount rate of 12%, the average company deploying basic virtualization could see an ROI of 472% and payback in less than a year (including deployment time).

All of this is huge news. You need to use these numbers in conversations with clients and leverage them in your marketing collateral.

Virtualization done right can save customers bundles of cash. That’s the net-net.

Done right is the key, however. It’s not easy to manage the environments once virtualization is deployed.  We’ll write more on this topic.  And, you can join us for our latest webinar to get even more info and ask questions of our guest, Chris DesRosiers of NexusIS.