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Virtualization in 2013: Staying the Course

Aritra Sarkhel | Feb. 7, 2013
Virtualization was a top priority last year. It continues to remain so for partners and CIOs alike.

Virtualization was a top priority last year. It continues to remain so for partners and CIOs alike.

IDC believes that virtualization is going to be one of the fastest growing segments in the global software market. It grew 4.7 percent in the first half of 2012 to $167 billion (about Rs 9 lakh crore) and has one of the most positive growth rates among the primary market segments.

According to Sanchit Vir Gogia, Principal Analyst, IDC India, there has been a lot of traction in server virtualization while network virtualization is yet to reach that stage. "We had the application service provider (ASP) model back in 2000 which was a complete failure in India because it was a cloud model without the virtualization infrastructure. Today, virtualized infrastructure happens to be the backbone of everything that we do," says Gogia.

Other analysts like AMI Partners stated in a study that, though virtualization as a technology is in its growing stages, the opportunities are plenty in the market across server, desktop and storage virtualization in India.

The reports have affirmed that need for virtualized infrastructure will increase exponentially in the forthcoming years and the size of this untapped market is considerable, presenting a huge growth potential for leading participants in the market.

Gartner analysts mentioned in the Hype Cycle Report 2012 that the price-sensitive Indian enterprises have recently shown a tendency to invest in transformational technologies like virtualization which offers a significant upside in terms of agility or productivity gains. This dynamic shift in business conditions is considered vital to drive business benefits.

Meeting demands

Channelworld's State of the Mart 2013 survey pointed out that around 22.8 percent of SIs in India would want to get into virtualization in 2013. Earlier some SIs stayed away from it for various reasons. While the ever increasing costs of datacenter and IT infrastructure has made virtualization a necessity, the technology would bring in additional revenue for SIs and increase their portfolio of services.

The need for virtualization is imminent, says Yogesh Mehta, Director, Sysware Infotech. "Enterprises want to reduce their carbon footprint and recurring costs. They are going to consolidate things and put more and more apps on fewer servers in a virtualized environment," he adds.

"Virtualization related projects deliver a lot of profitability at the end of the project cycle. These kinds of solutions will allow SIs to be more effective players. We could make good margins in these," says Ravi Putta, Co-founder and Managing Director, Alliance Prosys.

Moreover, the SIs would benefit from the services opportunity if the virtualized environment positioned for the customer is managed by the partner themselves. Vineet Dahiya, Co-Founder and Executive Director, Info Axon Technologies, says "Whatever solutions we offer, we put it on a virtualized environment. The hidden benefit of such a proposition is that more the complexity of the customer's infrastructure, the more play we get in terms of services."


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