We expect VMware’s market share of server virtualization software to decline over the Trefis forecast period from historical highs of about 50%. Despite this, we have slightly increased our VMware market share forecast based on strong demand for the company’s vSphere software. Like VMware’s other virtualization software, vSphere allows companies to increase the utilization of their servers by allocating server resources to software applications independent of the underlying operating system required to execute the application. vSphere also makes it easier for IT managers to better manage various internal or external “clouds” or groups of virtualized server resources.
Launched in May of this year, vSphere has garnered strong demand. The company mentioned in its earnings release that 75% of its customers are planning to upgrade to vSphere in the next six months. As a result, we now expect VMware share to be higher over our forecast period and to be 33% by the end of the Trefis forecast period, up from 29% previously.
Within VMware’s content on our platform, you can see how VMware market share impacts the company’s stock. VMware’s recent earnings results were in-line with many of our expectations. You can find additional detail on all of the updates to our VMware analysis here (scroll to comments section).
