Server virtualization is all about creating Virtual Private Server (VPS), also referred to as Virtual Dedicated Server (VDS). It is way of partitioning a physical server computer into multiple servers such that each has the appearance and capabilities of running on its own dedicated machine. Server virtualization is one of the most important IT concepts nowadays.

Currently in India, server virtualization is the backbone of virtualization. Storage and desktop virtualization are in early stage. The adoption of virtualization is yet to mature from server virtualization to a more holistic end-to-end virtualization to enhance resource utilization.

According to Naveen Mishra, Senior Research Analyst, Gartner, Server Virtualization, which is presently at a parturient stage in India, is expected to grow. The adoption of x86 server virtualization technology is expected to grow in two-three years, and Gartner is expecting double digit penetration at that point of time.

Mishra has explained that there are different levels of adoption and maturity levels; for example, enterprises have virtualized 80% of their applications and SMBs are just selecting a few applications. Interest had risen as they know that this technology will help them save cost in the long run and hence they have started with some kind of virtualization.

The International Data Corporation (IDC), a market research firm, has predicted that virtualization will grow dramatically by 2010. According to IDC, more than 1.7 million servers will be shipped for virtualization activities, resulting in 7.9 million logical servers. This will represents 14.6% of all physical servers in 2010, against just 4.5% of server shipped in 2005.