Demand for desktop virtualization is growing by leaps and bounds, according to a new global market study by virtual solution provider Citrix (NASDAQ:CTXS). The survey found that 55 percent of responding companies will deploy new desktop virtualization for the first time by 2013. [1] This offers a big opportunity for virtual desktop solution provider, VMware (NYSE:VMW), which is currently tied with Citrix for the top slot in the virtual desktop infrastructure (VDI) market. The two companies together account for nearly 80% of the total desktop virtualization market, followed by Microsoft (NASDAQ:MSFT) which has over 15% share. [2]
We currently have a $111 Trefis price estimate for VMware, about 33% above the current market price.
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Security Concerns Driving VDI Adoption
Out of the companies surveyed, 86 percent said security was the biggest reason for their consideration, and that desktop virtualization is a strategic choice for improving security in the age of multiple devices. Indeed, security is now as big a reason as cost savings when going for desktop virtualization.
Desktop virtualization offers centralized control and management of software devices, which mitigates security risks.
Increase in Use of Mobile Devices
While security concern is a major driving factor for desktop virtualization, the demand for the service is also boosted by rapid growth in mobile devices within organizations. As such, the need for secure access for mobile and user-owned devices, increased security requirements for apps and data, and the desire to be able to accommodate an increasingly mobile workforce are important factors for the adoption of desktop virtualization.
Desktop virtualization enables a more flexible workplace, provides support for mobile workers, and allows effective management of a variety of devices used in organizations.
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Notes:- Citrix Study: Mobility Is Driving Desktop Virtualization , newsfactor.com [↩]
- VDI Market Shares, journeytocloud.com [↩]
