Virtualization Continues to See Strong Growth in Second Quarter, According to IDC

Posted by Duncan Epping in October 21st, 2008
Published in Server

It’s funny to read reports like the one IDC just produced. It makes you wonder, who writes them and where they get their information from… especially when you read the following:

VMware grew its x86 server virtualization software business 27% year over year and maintained the number 1 position in the market with 78% revenue share in 2Q08. When looking at new x86 virtualization licenses, VMware continues to hold on to its strong position in the x86 market with a combined market share of VMware ESX and VMware Server at 44%. However, in its first quarter of general availability Microsoft Hyper-V delivered a strong showing, and when combined with Virtual Server 2005, Microsoft’s market share is 23% of new shipments.

As I expected Microsoft jumped right on it and had their marketing department come up with some great statements:

Microsoft’s server virtualization software already has half of VMware’s share in the market.

But usual there’s a guy called Mike, and Mike well… Mike should start working for myth busters cause that’s what he does best… busting the Virtualization Marketing Myths:

First of all Microsoft didn’t all of a sudden grab market share. Last year was the first year of this report and Microsoft was reported as having 20% market share at the time by shipments. In Q1 2008 they dropped to 18% and now they’re back to 23%. In the course of a year they climbed 3%. This is probably just normal survey error at work. To back that up VMware showed a similar trend going from 51% in 2007 to 42% in Q1 2008 and now back up to 44% in Q2 2008.

Well, just continue to read Mike D’s response to the IDC report and MS article here


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