Virtualization can save emerging APAC markets $44B by 2020

According to a IDC study sponsored by VMware, Asia-Pacific developing markets can gain twice as much from virtualization compared with their more mature counterparts in the region.
Written by Ellyne Phneah, Contributor

SINGAPORE--Server virtualization is expected to save emerging markets in Asia-Pacific US$44 billion by 2020, a greater amount compared to the more mature markets in the region, a IDC study reveals.
According to the IDC Server Economies Index 2013 released Thursday, emerging markets China, India, Indonesia, Malaysia and Thailand are able to save more over the next seven years.

In comparison, the more mature markets Australia, Japan and Singapore derived US$8 billion of savings due to virtualization compared to the emerging markets. Australia is the most advanced market in the region when it comes to the adoption of x86 server virtualization.

The study, sponsored by VMware, had created a hypothetical view of a world where x86 servers did not exist 10 years ago, and then forecasts the impact server virtualization will have made by the year 2020. The hypothesis and forecast was made over eight markets in Asia-Pacific including Australia, India, Indonesia, Malaysia, China, Singapore, Thailand and Japan, and assumes every country will fully virtualize its servers.

The greater savings from virtualization the developing markets are due to avoidance of more costs incurred from server shipments, along with the presence of more physical servers in the region, Matthew Hardman, senior product marketing manager of VMware ASEAN and India, noted, at the study's release here Thursday.

Overall, the Asia-Pacific region will see US$98 billion worth of cost savings from 2003 to 2020 in the areas of server spending, power and cooling, floor space and cost of manpower and overheads.

For markets in the region, the most significant cost savings came from server spending accounting for around half of the overall costs at US$48.7 billion. This is followed by the avoidance of power costs at US$17.6 billion associated with these servers.

The potential economic impact by country in US$ millions (Source: IDC Server Economies Index 2013)


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