The market for Data Centre Virtualization Market size is forecast to reach $13.71 Billion by 2026, growing at a CAGR of 15.6% from 2021 to 2026. The Data Centre Virtualization Market is estimated to witness substantial growth over the forecast period primarily due to rise in need to reduce enterprise operational costs and enhance business agility and increase in deployment of data centre virtualization owing to benefits as reduction in cost, better testing and easier migration accelerating the market growth. Data centre virtualization is a method of designing, deploying, and improving data centre on cloud computing, big data, artificial intelligence, machine learning and virtualization technology. The data centre fundamentally enables the virtualization of the physical server in the data centre alongside networking, storage, and other equipment and infrastructure devices. The data centre virtualization covers an extensive range of technology, tools, and several processes that facilitate a data centre to implement and operate services such as customer relationship management and enterprise resource planning on top of a technology or virtualization layer.
Data Centre Virtualization Market Segment Analysis – By Type
The market segment by type into Advisory & Implementation Services, Optimization Services, Managed Services, Technical Support Services, Type 1 Hypervisor, Type 2 Hypervisor, Host Machine, Guest Machine, Para virtualization Tools and Others. The optimization segment is expected to grow at a higher CAGR during the forecast period 2021-2026. Optimization services help organizations to plan, build and manage data centre facilities. These services also assist organizations to enhance operational efficiency and performance as well as improve network security. Advisory & implementation services help enterprises transform their data centres to become more agile and cost efficient which requires advisory and implementation services. Such advantages associated with optimization services are expected to drive the growth of this segment.
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Data Centre Virtualization Market Segment Analysis – By Industry Vertical
The market segment by industry vertical into IT & Telecommunication, BFSI, Government, Healthcare, Education, Retail & SCM, Media and Entertainment, Manufacturing, Automotive and Others. The healthcare segment is the leading segment of all the segments in terms of revenue. Healthcare organizations have moved to data centers and cloud services to manage and process the of growing data. The lower deployment costs and increased flexibility of virtualization strategies support rapid infrastructure growth as entities expand their IT capabilities to meet higher demands for users. It provides cutback on infrastructure costs while providing a more advanced, secure environment.
Data Centre Virtualization Market Segment Analysis – By Geography
Data Centre Virtualization Market by geography has been segmented into North America, Europe, APAC, South-America and RoW. North-America is expected to dominate the Data Centre Virtualization Market due to as organizations in this region are early adoptors of the data centre virtualization technology. Additionally, the presence of key market players in this region such as VMware, Microsoft, AWS, Citrix Systems are the key factors to drive the market growth. Also this region is experiencing very high cloud adoption and cloud service providers are expanding and improving their infrastructure by virtualization services.
Data Centre Virtualization Market Drivers
Benefits of data centre virtualization driving the market growth
The immediate benefits of data centre virtualization in different sectors are the major driving factor for the growth of this market. Virtualization abstracts the hardware components of the data centre and provides a common software layer to manage the virtual machines. Data centre virtualization allows one to use fewer machines in the data centre which reduces operating cost as well as such as heat build-up. It is easier to segregate services running on the same server such as separating email, web services and database server using virtual machines. Virtualization makes it easier to deploy new applications without hardware configuration. Backup and redeployment is easier. Such benefits driving the market growth of data centre virtualization.
Recycling of heat generation in data centre virtualization driving the market growth
Recycling of heat generation produced in the data centre virtualization is driving the market growth. Utilization of heat generated by data centre is one thing that engineers are looking at in regards to energy consumption. Excess heat generated from collocation facilities can be diverted to homes and businesses, creating a district heat network. Heat generated is used for energy management and savings and the amount of heat generated can now instead be utilized for the optimization of other avenues in data centre. For instance Telecity, a data centre in Paris uses waste heat to provide heat to an on-site climate change arboretum, where the effects of future climate change are studied.
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Data Centre Virtualization Market Challenges
Missing components and Resource challenges hampering market growth
One of the biggest challenges in data center virtualization is missing components and resource challenges. IT organizations usually virtualize part of their data centre assets. Virtualization works best when it includes everything and there are no silos of data storage or data management appliances. Limiting the scope of the virtual infrastructure ultimately adds cost and complexity. Also allocating resources in the virtualized data centre can create load-sharing problems. Where multiple workloads are multiplexed using the VM hypervisor, IOstreams for available resources. Such challenges hampering the market growth.
Data Centre Virtualization Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Data Centre Virtualization Market. The Data Centre Virtualization top ten companies include:
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A. Desktop Virtualization Market
B. Application Virtualization Market
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