 "Virtualisation To Help Indian Businesses Avoid Spending $3.89 Bn By 2020")
VMware, Inc., the virtualisation and cloud infrastructure company, launched the Virtualization 2020 campaign in an effort to help businesses move from the client server era to mobile cloud era of computing. As a first step, VMware sponsored the IDC Server Economies Index to demonstrate the potential of virtualisation and validate the impact of server virtualisation in Asia-Pacific.
The study revealed that the economic impact of server virtualisation is estimated to reach US$3.89 billion in India by 2020.
Titled Vision 2020: Virtualization’s Potential US$98 Billion Impact, the study showed that US$98 billion worth of spending is expected to be avoided in the region from 2003-2020 in the areas of server spending, power and cooling, floor space and cost of manpower and overheads. The report provides an analysis over the past 10 years and looks forward through 2020.
In India, IDC estimates the potential economic impact at US$3.89 billion, comprising costs avoided in a few key areas:
$2.37 billion in server spending avoided due to servers avoided. Server spending refers to the customer revenue generated from the sale of physical servers.
$666 million in power and cooling costs avoided due to servers avoided. This refers to cost of energy to power and cool a physical server in the datacentre.
$28 million in floor space costs avoided due to real estate avoided. This refers to the land or construction cost associated in housing a physical server.
$827 million in server admin costs avoided. This refers to server admin costs avoided and includes IDC’s estimate of the cost of people and overheads needed to manage each physical server.
“The IDC Server Economies Index points toward the value of increasing consolidation and the cost avoidance that virtualisation provides to businesses in India. With datacentres at the heart of IT transformation, we expect the adoption of virtualisation to accelerate over the next few years as organisations increasingly gain confidence and benefit from the technology,” said Venu Reddy, research director, IDC India.
“Indian organisations have just begun laying the foundation of their datacentre transformation with virtualisation. We’re excited and look forward to the huge opportunity that lies ahead as more and more organisations begin to benefit from our technologies on their journey to the cloud,” said T Srinivasan, managing director, VMware India & SAARC. “The IDC study provides some substantial estimates on the impact our technologies are creating in India,” he added.
The Software-Defined Journey Ahead
Over the past 12 months, VMware has made several announcements in support of the Software-Defined Datacentre, whereby the benefits of server virtualisation are applied to everything in the datacentre. While the IDC report captures the avoidance of costs associated with server virtualisation, it has been estimated that using a software-defined datacentre model for all other aspects of the datacentre could extend savings as much as six to seven times that of server virtualisation alone.
The software-defined datacentre opens up new market opportunities for virtualisation in networking, security, storage, for example. VMware estimates that the software-defined datacentre represents a US$28 billion total addressable market (TAM) opportunity by 2016 and could grow above 20 percent globally.
VMware customers have utilised that cost avoidance to both boost the bottom line as well as re-allocate those resources to more strategic IT initiatives such as new application development projects that drive the business forward.
Virtualisation Impact Across Asia Pacific
The IDC study estimates the impact of virtualisation to reach US$98 billion across eight countries in Asia Pacific by 2020. This includes $25.6 billion in costs that have been avoided to date, which is set to increase by an additional US$72.7 billion by 2020.
When comparing results across the countries studied, the findings showed that the mature markets of Australia, Japan and Singapore avoided US$8 billion more spending in historical costs due to virtualisation than the emerging markets. For these mature markets, the critical costs avoided was servers, which contributed to nearly half (47 percent) of overall costs in the four areas. In contrast, the emerging markets of China (PRC), India, Indonesia, Malaysia and Thailand saw greater forecast of the costs avoided by US$15 billion in future, than the mature markets.