The 451 Group believes that server virtualization is transforming data center management by breaking the one-to-one relationship between applications and (usually Windows) servers. This technology sits above the 'bare metal' and beneath the operating system, and 451 analysts believe that whoever dominates server virtualization will control this critical interface. The technology is becoming a major M&A; driver as traditional hardware, operating system and management vendors scramble to accommodate it. These findings are contained in a report just released by The 451 Group.
Server virtualization and related technologies can lower capital, energy and labor costs in the data center by streamlining application development and by consolidating workloads into more efficient arrangements of hardware. The 451 Group expects that, over the next two years, this will result in increasingly ubiquitous virtualization. All major server operating systems will include 'bare metal' virtualization as a standard. All major server CPUs will include hardware assistance for virtualization.
"We've already seen US$1.4 billion in M&A; activity related to server virtualization over the past four years, and we expect this trend to continue and grow," said Rachel Chalmers senior analyst for enterprise software at The 451 Group and lead author of the report. "The tremendous importance of server virtualization to data center operations, combined with stagnant growth around traditional IT and enterprise management software, sets the stage for a lot more M&A; over the next 12-18 months."
The findings come from a 451 Special Report titled " 'V' for virtualization: transforming the data center, driving M&A.;"