Virtualization Services Market to Reach $11.7 Billion by 2011, According to IDC

FRAMINGHAM, MA – JULY 11, 2007 – As virtualization goes mainstream and becomes an integral part of the IT infrastructure, there are increasing opportunities for IT services to help customers implement and support this expanding technology. According to recent research from IDC, the virtualization services market will grow from $5.5 billion in 2006 to $11.7 billion in 2011, as data center managers struggle to address power and cooling issues and the need for increased capacity.

"Currently, the majority of the services opportunity lies in supporting customers' initial implementations of virtualization," said IDC's Matt Healey, senior research analyst, Software and Hardware Support Services. "However, over the next several years, IT consulting and systems integration will begin to become the dominant opportunity as the technology becomes much more mainstream." As the technology matures, the demand for IT consulting and systems integration accelerates. IT consulting will eventually assist customers in determining how virtualization fits into the overall IT portfolio and its impact on the business.

Additional findings from the study include the following:

— The market for services around volume servers (servers with an average selling price of less than $25,000) will experience tremendous growth between 2006 and 2011. This is being driven by recent developments that enables customers to virtualize their x86/x64 servers.

— Currently, the market for virtualization services is nascent in comparison to the overall market for IT services. However, as the market evolves, services providers will need to be able to demonstrate virtualization capabilities to be considered for larger services engagements.

— Currently the largest services opportunities for the virtualization software vendors will be around software support and education and training. However, the IT consulting and Systems integration services are showing faster growth.

This IDC study, Worldwide Virtualization Services 2007-2011 Forecast (IDC #206724), is a multidimensional market-sizing and forecast document for virtualization services. In addition to sizing the market, it discusses the key trends shaping the market and driving its growth. Market-sizing and trend information is provided by region and includes support service activities such as telephone support, electronic monitoring, and maintenance.

To purchase this study, please contact IDC Sales at 508-988-7988 or sales@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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