Bangkok--14 Oct--PR One Network
Estimated THB 7 billion in costs avoided since 2003 and expected an additional of THB 23 billion from now to 2020
VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, launched the Virtualization 2020 campaign in an effort to help businesses move from the client server era to mobile cloud era of computing. As a first step, VMware sponsored the IDC Server Economies Index to demonstrate the potential of virtualization in Asia Pacific. The IDC Server Economies Index revealed that THB$ 2,940,000 Million worth of spending is expected to be avoided among 8 countries in Asia-Pacific from 2003-2020 due to the impact of server virtualization.
The IDC white paper, titled Vision 2020: Virtualization's Potential US$98 Billion Impact (August 2013, IDC#AP77008W, provides an analysis on virtualization over the past 10 years and looks forward through 2020. A hypothetical model was built to measure the impact of virtualization in the x 86 server world by estimating the additional x86 server spending that would have taken place if no virtualization solution was offered.
In Thailand, the potential economic impact during 2003-2020 using the IDC model is THB30.96 billion, comprising costs avoided in four key areas:
- THB 18,660 million of Cost Avoidance from not having to buy additional servers. When compared to the annual maintenance expense for Lumpini Park, this saving could be used to fund this “lung of Bangkok” for 21 years. Or this could be used to support all Disabled People in Thailand for 91 years.
- THB5,700 million of Cost Avoidance from not having to pay for power and cooling for those avoided servers.
- THB $6,450 million of Cost Avoidance from not having to pay for related server administration costs based on IDC’s estimation.
- THB$180 million of Cost Avoidance from not having to pay for related floor space.
Realizing Thailand’s ‘Virtualization Growth’ Vision
The findings indicate that more businesses are expected to adopt virtualization in the future. This is supported by the fact that Thailand x86 server market grew at a 3.4% CAGR [i]from 2007-2012, and is forecast to grow 4.6% from 2012-2020.
“We have currently reached a point where an increasing number of companies are embracing the concept of and adopting virtualization as they realize that the benefits include better business agility and flexibility, a reduction in operational expenses and greater environmental sustainability,” said Dr. Chawapol Jariyawiroj, Country Manager Thailand and Indochina, VMware
Software-Defined Cost Savings
As more enterprises adopt virtualization in the other areas of the Software-Defined Data Center, they are also exploring new opportunities in saving costs, such as networking, security and storage.
“As we move towards the SDDC, there is the potential for an even bigger increase in cost efficiency. Every dollar in cost saving allows for companies to re-invest in another key area for them to innovate and increase their productivity and competitiveness in the local landscape to realize the synthesis of technology and IT infrastructure,” Dr. Chawapol said.
About the IDC Server Economies Index
VMware commissioned IDC to create a hypothetical view of a world where x86 server virtualization never existed, and then to forecast the impact that server virtualization is likely to have made by the year 2020. IDC put together a selected team of IDC worldwide, Japan and Asia Pacific analysts to build a server-centric model that shows the impact of virtualization, which models data for eight countries across APJ (Australia, India, Indonesia, Malaysia, PRC, Singapore, Thailand & Japan). The IDC Server Economies Index indicates server virtualization’s positive economic impact across two time periods, 2003-2012 (historical) and 2013-2020 (forecast), in four areas: Server Spending, Power & Cooling, Server Admin, and Floor Space.
About VMware
VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2012 revenues of $4.61 billion, VMware has more than 480,000 customers and 55,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.
VMware is a registered trademark of VMware, Inc. in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organizations. The use of the word “partner” or “partnership” does not imply a legal partnership relationship between VMware and any other company.
[i] Source: IDC Server Economies Index 2013, Sponsored by VMware