Microsoft virtualization offering growing 7 times faster than VMware ESX

Monday, February 28, 2011

The Latin America division of Microsoft (Nasdaq: MSFT) is seeing its Hyper-V virtualization tool growing seven times faster than comparable solutions from competitor VMware (NYSE: VMW), Microsoft's regional business group lead for servers and tools, Jason Hermitage, told BNamericas.

"I expect that we will continue to take market share much faster than our competition. With Hyper-V, we are growing seven times faster than [VMware's enterprise virtualization solution] ESX," Hermitage said, basing his remarks on statistics from international tech consultancy IDC published late last year.

Independent of competitors, Microsoft is seeing the strongest year-over-year virtualization growth in Mexico, Brazil and Argentina. The company expects Hyper-V shipments on new servers to spike 150% for the full fiscal year, with growth coming in 3-4 times faster than VMware ESX.

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Key virtualization wins so far during Microsoft's current fiscal year include Brazil's central bank and Colombian healthcare and social services organization Compensar.

The tech giant is also making progress among medium-sized firms already using Microsoft technologies, Hermitage said.

"When customers look at the adoption of virtualization technology, they are looking at how easy it is to integrate into their existing infrastructure," he said. "In many cases,

customers are already using Microsoft management solutions, and what they are virtualizing in many cases is Windows. You don't need to retrain, and familiarity with Microsoft tools makes it easier."

The Microsoft division is also eyeing a 100% year-over-year growth in desktop virtualization projects, which are implemented in conjunction with US enterprise access solutions provider Citrix Systems (Nasdaq: CTXS).

In Latin America during the second half of calendar year 2010, the two companies' joint 25 wins averaged 1,000 users with wins up to 3,000 seats. New contracts came in all countries across Latin America, with most interest in the banking, telecom and government.

Related virtualization focus areas include complementing the virtualization offering with management tools, and also encouraging clients to leverage virtualization by transitioning to cloud computing.

The executive was unable to provide further details related to market share or revenue growth.

Globally, Microsoft's global profits stayed flat year-on-year at US$6.63bn during the company's fiscal second quarter, ended December 31. Sales during the same period rose 5% to US$20bn.