Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Virtualization - Statistics & Facts
A world where a single physical server can transform into multiple devices, each operating independently as virtual machines. Welcome to the world of virtualization, an innovative technology that has redefined the landscape of IT infrastructure and made cloud computing a household term. Virtualization is based on concepts that go back to the 1960s and 1970s but only took off in the 1990s and 2000s, given the increasing demand for computing power. Today, it is standard practice in IT enterprise infrastructure. Virtualization uses software programs to stimulate hardware functionality and create one or more virtual systems.
How does it work?
Virtualization allows a computing environment to run several independent systems – so-called virtual machines – simultaneously. These virtual machines share the same physical IT infrastructure and are managed and coordinated by an additional software interface named hypervisor. Virtualization provides the possibility of making more efficient use of IT infrastructure resources by allowing enterprises to operate on numerous operating systems, multiple virtual systems, and various applications on a single server. One of the largest market segments enabled by virtualization is software as a service (SaaS) with end user spending of over 247 billion U.S. dollars in 2024.
Virtualization in action
Almost any type of IT infrastructure can be virtualized, including servers, desktops, networks, storage, data, applications, data centers, CPUs, and GPUs. Serverless is a cloud-native model that enables developers to build and run applications without needing to manage servers. One of the fastest growing segments powered by virtualization is the delivery of infrastructure as a service (IaaS) with a projected growth rate of over 25 percent in 2024, with its server-centric infrastructure offering greater scalability, flexibility, and reduced costs.
In contrast, network virtualization can combine multiple physical networks into one virtual software-based network or divide one physical network into separate, independent virtual networks. A virtual private network (VPN) will extend a network securely from a private, known location across a public network as if networks were directly linked. Since the surge in work from home models, the enterprise VPN has made it possible to provide employees with corporate intranet access when working remotely or traveling.
As technology continues to evolve, virtualization will play an even more critical role in shaping the future of IT. With advancements in AI, machine learning, and edge computing, virtualization will enable innovative solutions that drive digital transformation.
