Development in the computing techniques marked the commercial viability of cloud computing in the previous decade. Cloud computing enabled the people to use and store their tasks on a remote cloud server via the Internet. Cloud computing also initiated the virtualization of computer resources, which allowed the people and organizations to use hardware computer resources such as the memory, storage, CPU, and other network inputs in a virtual environment. With virtualization, the utility and prevalence of virtual machines (VMs) started to spread. In a virtualized environment, the guest VM computer uses resources situated on a real server at a real location that is mostly unknown to the user. Hardware virtualization is done with the help of a software tool called hypervisor; that generally acts as a host operating system. After integrating the hypervisor, an ecosystem of virtual computer is created in which the user further installs a guest operating system. This newly established guest operating system hosts the virtual machines, which are a software program that acts as a virtual duplicate of the computer hardware.
Virtual machines can be used for several applications such as testing a new operating system or its version, software emulation/emulator for different operating systems and running other daily computing tasks. By installing virtual machines in an organization, the companies and organizations are saving a great amount of capital by not buying dedicated physical hardware resources for numerous uses. VMs allows the enterprises to accomplish multiple tasks on a single system that conventionally required a separate dedicated hardware system. Due to the cost-saving feature and relatively fast operations, enterprises of all sizes-small, medium, and large are employing virtual machines for their daily tasks; this is supporting the key players involved in the virtual machine market which held the global market size of $3.56 billion as of 2018. The burgeoning demand for VMs from the information technology sector is expected to drive the virtual machines market at a CAGR of 3.36% during the forecast period of 2019 to 2025.
North America Generated the Highest Revenues in the Virtual Machine Market in 2018
Virtual machines are highly popular among the growing startups because Silicon Valley in the United States is the hub for innovative startups, the North American region was observed as the most profitable region in the virtual machine market in 2018. The demography was accountable for 36.8% of the global geographical distribution. The presence of some of the major key players and some of the largest data center in the area are responsible for this massive market share. The North American region follows the European region in terms of market share in the VM market. However, the fastest developing economies such as India and China are advocating the growing share of the APAC region in the virtual machine market.
Medium Scale Enterprises Driving the Virtual Machines Market
The growing number of enterprises are poised as the main reason fueling the virtual machine market growth. Among the small, medium, and large scale enterprises, the medium scale enterprises were observed as the main application in the virtual machines market. The growth in the medium scale enterprises is projected to depict a CAGR of 4.62% during the forecast period. The merger and acquisition of small scale enterprises are trending in the corporate industry. These small scale enterprises team-up to form medium scale enterprises so that they can compete with the multi-nationals and large scale enterprises. Virtual machines are used as a computing tool in most of the end-user industries such as the information technology, banking, financial, and insurance, manufacturing, automotive, aerospace & defense, and the e-commerce sector. With such a tremendous application base, the global demands for virtual machines are estimated to grow significantly.
Reasons Driving the Virtual Machine Setups in Organizations
Server Side Virtual Machine: Huge data centers have a great amount of data load to handle coming from around the world. Managing such heavy traffic with dedicated physical consoles is a difficult task. Thus, the virtual machine allows the data center administrators to monitor and provision thousands of running PCs from a single console. This saves a great amount of time that was initially wasted during the configuration and resource mapping of individual computers. Mapping virtual machines onto physical hardware according to the specific administration policies becomes an easy task when all these VMs are connected to each other in a shared pool. Additionally, managing traditional hardware challenges such as hardware failure, dealing with an equipment lease, and preventive maintenance can be handled by shifting the VM from defective hardware to a working console via the Internet. Thus, the features provided by the virtual machines are being enjoyed by some of the organizations that are involved in the server-side business in the information technology business.
Optimized Security and File Sharing: Cloud computing allows the deployment of virtual machines on various models such as the public cloud, private cloud, and hybrid cloud. Each of the service models serves specific purposes. Public cloud is used for basic business such as deploying applications which are expected to be used by a mass population. The private cloud allows the company or an organization to deploy and share virtual machines internally. In this setup, the VMs deployed are not isolated completely, which means under this setup, the employees of the organization can share data and files globally. With this infrastructure, the file-sharing application in the infrastructure can be streamlined efficiently.
Further, there exists a more secure, reliable, and expensive deployment model for virtual machines called the hybrid cloud. This deployment model is an advanced setup for virtual machines where the deployed VMs can share data among themselves and at the same time, these VMs are isolated from the global environment. An isolated environment means slight or no chances of a data breach. However, currently, the cloud computing environment is still not completely efficient and requires further research and development. Companies involved in the virtual machine business are constantly investing in the research and development to achieve complete efficiency, and therefore, significant capital is floating in the ecosystem, which is supporting the global virtual machine market.
Virtual Machine Market Competitive Landscape
The companies operating in the virtual machine market are Huawei Technologies Co. Ltd, Google Inc., VMware Inc., Microsoft Corporation, Oracle Corporation, Proxmox Server Solutions Gmbh, Citrix Systems, Inc., Amazon.com, Inc., and Redhat Inc.
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