Blade Watch

http://searchservervirtualization.techtarget.com/news/article/0,289142,sid94_gci1314840,00.html

Despite a decline in spending on business software given a waning U.S. economy, an April 2008 survey of IT organizations shows that virtualization software spending has increased.

The survey of about 2,000 respondents by Rockville, Md.-based ChangeWave Research found that overall software spending is on the decline, with only 12% of respondents saying that they will invest in software over the next 90 days, and one in four saying they will spend less. But at the same time, virtualization investments are on the rise, increasing 12 percentage points from 58% in January to 70% today, the survey showed.VMware Inc.’s April 2008 earnings report is evidence of this; revenues for the first quarter were $438 million, an increase of 69% compared with the first quarter of 2007.

During a question-and-answer session following her keynote address at the Morgan Stanley Technology Conference in Boston on May 21, VMware CEO and President Diane Greene said that in the realm of virtualization spending, the economy has cut both ways.

“We see people accelerating virtualization when their budgets tighten, but you also see the spending decrease. We see both sides,” Greene said. “People might look at virtualization on a different schedule now, but everyone is looking to create a fully virtualized environment. We don’t know the pace, but we know we are in a very good position.”

Virtualization is becoming more of a standard way of doing business, whether it’s the way of providing your developers with a server/desktop infrastructure, or the only way you provision servers. That the return on investment, the benefits or empowerment end users and the IT realize continues is what underpins the demand for the technology. Spending money on a solution, a next generation platform isn’t necessarily an issue, if with the business buy in, I can show that deployment times fall from three days to 2 hours, that resources can be more effectively allocated, and my infrastructure more aligned to my needs.

It’s those things that can’t necessarily be valued – but in demand nonetheless. The end if you will to the, “we can do that, can you raise a project and come back in three weeks?” when you only want a development server for a few days to test that new application you’re thinking about buying.

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