VMware Celebrates Nine Years

VMware celebrated its nine-year anniversary, commemorating nearly a decade of innovation, excellence and phenomenal growth

January 31, 2007

2 Min Read
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PALO ALTO, Calif. -- VMware, Inc., the global leader in software for industry-standard virtualized desktops and servers, this month celebrated its nine-year anniversary, commemorating nearly a decade of innovation, excellence and phenomenal growth.

"We started VMware with the belief that virtualization was one of those rare technologies that could fundamentally change the established IT landscape and drive significant new value for customers and the industry in ways few could imagine," said Diane Greene, president of VMware. "The accelerating adoption of VMware products by customers around the world, the new market opportunities it has created for partners and its emergence as one of the highest-growth multibillion-dollar software sectors has made virtualization the most significant IT trend of this decade."

Virtualization has rapidly progressed from an early adopter technology into a mainstream business practice. Organizations of all sizes are considering virtualization as one of their top IT priorities in the coming years, on top of the already widespread deployment of virtualization seen in today's IT environments:

  • IDC estimates 2.3 million virtual servers were deployed in 2006,

    compared to 7.7 million physical servers in the same year (1)

  • A recent IDC survey showed 76 percent of companies to be adopting or

    planning to adopt x86 virtualization in the next 12 months (2)

  • Forrester estimates that 46 percent of the Global 2000 are eitheralready using or will pilot virtualization within the next twelve

    months and 71 percent of them are increasing their spend on

    virtualization in the next 12 months (3)

VMware continues to drive its leadership position in the virtualization market through its industry-leading and award-winning products. Organizations of all sizes and from all industries have embraced virtualization for use cases ranging from server consolidation and containment, software lifecycle automation, business continuity and desktop manageability and security. The compelling value proposition, breadth of use cases and tangible cost savings has fueled customer adoption of VMware products to record levels:

  • 2006 VMware revenue increased 83 percent year-over-year to

    $709 million; VMware grew Q4, 2006 revenues 101 percent year-over-yearto $232 million, placing it on an annual run rate of more than

    $900 million

  • 43 percent of VMware customers deploy all or most of their new

    applications in VMware virtual machines, with most customers expectingto virtualize at least 50 percent of their IT infrastructure within

    three years

  • 85 percent of VMware customers use VMware virtualization products in

    production environments

  • 75 percent of VMware customers plan to upgrade their existing VMware

    environments to VMware Infrastructure 3 by mid 2007

  • In 2006, VMware received 30 awards for innovation and product

    excellence, including eWEEK's award for being one of the most 25influential products of the past 25 years

The market for virtualization-related services, hardware and software has also seen tremendous growth in 2006. Customers are increasingly looking to the technology industry to provide solutions optimized for virtualization, a trend that was reinforced in 2006 with the emergence of hardware-assisted virtualization, paravirtualization in the operating system, broad ISV support for virtual machines and a rapidly growing ecosystem of service providers.

VMware Inc.

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