Can virtualization be a revenue panacea for the channel?

It’s a hot topic, but it’s complex – and resellers have a lot of questions about it. Virtualization is no longer an immature technology held back by limited user deployments. More companies are aware of virtualization – and interested in deploying it.

The number of North American companies using virtualization technology has increased from 29 per cent to 40 per cent over the past two years, according to a new report from Forrester Research. In a survey of 1,267 enterprises (with more than 1,000 employees) and 503 small and mid-sized businesses, only eight per cent of respondents were unaware of virtualization.

By reducing server counts, VARs can help their customers trim operating costs, make better use of their equipment and ease their management woes. Players in this space include VMware – considered the market leader – and Microsoft, which has developed its own Virtual Server software. Smaller companies such as Virtual Iron are using open-source virtualization hypervisor Xen as a lower-cost alternative.

Forrester found that some respondents appeared to have confused server vendors with those that actually make the enabling virtualization software – so clearly this is an area where more education is required.

Tech Data’s U.S. operation is addressing it head-on as part of its Advanced Infrastructure Solutions (AIS) division – a new division that provides network-certified sales staff and marketing experts to help VARs in the areas of virtualization, x86-based blade servers and other changes in technology infrastructure. The idea is that AIS sales staff will work more closely with customers to help select the right hardware and software for their storage infrastructure.

Tech Data will offer Parallels and XenSource server virtualization solutions to VARs, and it’s the first channel source for IBM servers pre-configured with XenSource’s XenEnterprise virtualization software. It will also provide technical expertise and integration support services around virtualization.

In Canada, virtualization is being addressed through Tech Data Canada’s storage and server business unit.

Virtualization is a potential new revenue stream for VARs, but customers have a lot of questions (as do VARs). Distributors can step up to the plate by providing expertise and support, as well as product bundles (such as Tech Data’s pre-configured IBM servers) that make it easier for VARs to sell virtualization to their customers.

And it’s a market that won’t be going away any time soon. In a December report by IDC, 49 per cent of respondents said they’re evaluating storage virtualization and 34 per cent said they’ve already implemented it. Over the next five years, virtualization will drive changes in storage system architectures, said the report, encouraging significant investments in new storage software solutions.

And distributors’ offerings should reflect these changes.

Comment: [email protected]

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Jim Love, Chief Content Officer, IT World Canada

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Vawn Himmelsbach
Vawn Himmelsbach
Is a Toronto-based journalist and regular contributor to IT World Canada's publications.

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