(June 28, 2011) – In the last two years since the official end of the recession, small and midsized businesses (SMBs) have unsurprisingly increased their spending on IT. But what’s interesting is just exactly where the spend is being directed. For midsized businesses, namely those with over 100 employees, the quest to sweat existing assets appears to be a strong driver for the uptake of server virtualization.
Recently, IDC predicted that in the U.S. alone, the 8 million-plus SMBs there will spend in excess of $125 billion on IT, which is $5 billion more than they spent in 2010.
“Small and mid-sized businesses are now seeing the value of virtualizing their existing servers or outsourcing the headache to a specialist hosting provider to provide managed server virtualization,” says Taylor Deakyne of OneStopClick, a technology-related research company. “Notably in medium-sized businesses, server virtualization would appear to be gaining faster traction, as average server count has remained relatively stable a strong indication that server virtualization is being used to improve the utilisation of existing assets".
“Apart from the obvious reasons of improved server utilisation, improved security and availability, one of the main reasons we see businesses pursue server virtualization is because they realise that their staff are devoting too much time to the management of their servers,” explains Deakyne. “In fact, it’s been shown that 9 out of 10 IT departments spend a majority of their time on routine tasks, such as managing server workloads, adding new employees and launching new applications. Many of these routine tasks are automated through server virtualization.”
So the trend is more about spending on IT to improve efficiency, investing in infrastructure and other technology areas, not necessarily hiring more staff to support new purchases.
In terms of adoption, server virtualization is still some way off saturation point. According to the 2010 Cisco Connected World Report, only 29 percent of respondents worldwide have more than 50 percent of their production servers virtualized, and only 28 percent have over half of their non-production servers virtualized.
To learn more about server virtualization, OneStopClick have just published the 2011 Server Virtualization Buyer's Guide, available here for download. For more information about OneStopClick’s services and research, visit www.onestopclick.com
OneStopClick publishes white papers and technology-related research helping IT professionals and business executives achieve better business outcomes. Their focused research has helped thousands of professionals educate themselves on business technology related solutions, as well as identify, evaluate and qualify suitable service providers.
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