Server virtualization market heats up as VMware rivals try to create alluring alternatives
It’s time to think about a replacement, says Gartner
The market for server virtualization tools is about to fragment, according to analyst firm Gartner.
“The server virtualization market is facing the most significant disruption in decades,” states the analyst’s October market guide to server virtualization platforms. Broadcom’s acquisition of VMware – and subsequent decision to focus its efforts on a broad public cloud platform – is the reason for the shifting market.
“For many Gartner clients, the aftereffects of VMware’s acquisition by Broadcom represent a turning point in the market for server virtualization,” the market guide states. “Disruption is being driven by customer concerns about increases in the total cost of ownership, the quality of support, and changes to product roadmaps with limited perceived benefit.”
The document notes that as of 2024 VMware dominated the server virtualization market with over 96 percent of revenue share, and that none of its rivals can completely match the capabilities of Virtzilla’s stack. But Gartner feels “many” of its clients are sufficiently upset by Broadcom’s actions, which have usually seen VMware customers’ software costs rise 300 to 400 percent, that they have lost trust in the virtualization pioneer and are ready to “explore alternatives for current and/or future infrastructure requirements.”
Gartner thinks this moment is therefore an opportunity in which VMware users should contemplate modernizing their infrastructure and the alternative virtualization platforms that will make that possible.
“Any significant change to an existing server virtualization platform would also take time and effort, but to generate business benefit, it must include reducing technical debt and application modernization as part of the process,” the market guide states, before urging heads of infrastructure and operations to “create an exit plan from their existing hypervisor vendor, now.”
“Identify the core capabilities required in a replacement virtualization platform, and then pursue ‘quick win’ and low-risk opportunities to evaluate and implement alternate virtualization technologies,” Gartner advises.
The document lists 32 server virtualization vendors, doesn’t recommend any, and says many VMware alternatives “are incomplete and/or maturing.”
Gartner also feels that most organizations won’t move to a new virtualization platform until 2027, but that “migrations will accelerate through 2026.” ®