New IDC report shows Microsoft gaining share in Server Virtualization

Industry analyst firm IDC announced last week worldwide virtualization license shipments in the second quarter of 2008 (2Q08) increased 53% year over year, compared to a 72% year-over-year increase the previous quarter. The x86 server market led the way with 60% year-over-year growth followed by the EPIC server market with 18% growth. See the news release here.

IDC’s findings included the following:

·         “Quarterly totals of x86 server virtualization licenses continue to experience healthy growth, although the growth rates have slowed over the last four quarters. The modest decline in growth rates indicates that the market is showing early signs of maturation.”

·         Worldwide new server shipments virtualized increased 52% year over year in the second quarter, compared to 70% growth in 1Q08.

·         Worldwide virtualization software revenue grew 15% year over year in 2Q08, compared to 32% growth in the first quarter of 2008. The growth in virtualization software revenue primarily came from the x86 server market, which grew 39% year over year.

·         VMware’s position in the x86 market, with a combined market share of VMware ESX and VMware Server, is at 44%.

·         Microsoft's Hyper-V delivered a strong showing, and when combined with Virtual Server 2005, helped Microsoft to capture 23% of new shipments.