Server virtualization market heats up as VMware rivals try to create alluring alternatives

The market for server virtualization tools is about to fragment, according to analyst firm Gartner.

“The server virtualization market is facing the most significant disruption in decades,” states the analyst’s October market guide to server virtualization platforms. Broadcom’s acquisition of VMware – and subsequent decision to focus its efforts on a broad public cloud platform – is the reason for the shifting market.

“For many Gartner clients, the aftereffects of VMware’s acquisition by Broadcom represent a turning point in the market for server virtualization,” the market guide states. “Disruption is being driven by customer concerns about increases in the total cost of ownership, the quality of support, and changes to product roadmaps with limited perceived benefit.”

The document notes that as of 2024 VMware dominated the server virtualization market with over 96 percent of revenue share, and that none of its rivals can completely match the capabilities of Virtzilla ...