Virtualization to eat into IT budgets

By Manek Dubash, |  Virtualization

Virtualization will have the single largest impact on budgets for IT hardware
and support over the next three years, a market that will be dominated by three
large vendors, says a new study.

Saugatuck Technology's
new report, entitled "The Many Faces of Virtualization -- Understanding
a New IT Reality", finds that Cisco,
and Citrix,
which recently acquired XenSource,
will account for 60 percent of all new virtualization deployments. The second
largest spend will be on network virtualization, according to the research.

A third key finding of the study is that all facets of IT virtualization will
see substantial enhancements in functionality and performance, with the most
significant enhancements in virtualization technology being found in microprocessor,
hypervisor, and operating systems.

The background to the report is Saugatuck's finding that "virtualization
is a key enabler of IT and business efficiency, but it is vastly misunderstood
and underestimated within user enterprises. As a result, user executives fail
to effectively manage it, and therefore fail to realize the full potential and
benefits of IT virtualization. And IT vendors seldom realize the breadth and
depth of opportunity that IT virtualization presents to them."

According to the research company, the study "provides previously unseen
depth and explanation of the rapidly-evolving topology of IT virtualization
in its many forms, from servers to mainframes, to applications to storage to

"We're at a very critical point in the evolution and adoption of virtualization
by both users and vendors. Almost everyone sees opportunity in virtualization,
but very few really grasp its scope and complexity," said Saugatuck VP
and study author Charles Burns. Presumably he has in mind issues such as virtualization
security, about which Gartner last year warned of the risks.

"That leads to a lot of missed opportunities -- and some very inflated
costs of management", continued Burns. "Our goal with this study is
to provide a foundation for understanding key categories of virtualization,
their benefits, and how to manage them effectively."

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