The hosted virtual desktop (HVD) market has been forecast to increase at a compound annual growth rate (CAGR) of 65.7% through 2016, driven by the increasing need to reduce desktop infrastructure costs, and the evolution of cloud computing and cloud-based services.
PC vendors must prepare for the growth in demand for this client computing architecture by adjusting sales strategies and compensation models or they risk losing expenditure share with enterprise customers.
Distributed computing has been the dominant client computing architecture for the past 15 to 20 years, but a number of changes in the way users can access applications and client computing capabilities are bringing a number of alternative architectures to the fore.
Hosted virtual desktops are currently the most visible of these alternative architectures and HVD adoption is likely to be rapid during the next three to five years, particularly in mature markets where existing data centre and network infrastructures will be used to offset the cost of entry.
This trend will have a major impact on the PC industry where enterprises that previously purchased high volumes of desktop PCs on a regular basis will now look to replace some desktop PCs with less-expensive devices and replace them less frequently. However, while PC hardware expenditure will fall in this scenario, these enterprises will require more servers, network bandwidth and software to support the new architectures.
Desktop virtualization is software technology that separates the desktop environment and associated application software from the physical client device that is used to access it.
Desktop virtualization can be used in conjunction with application virtualization and (Windows) user profile management systems, now termed "user virtualization," to provide a comprehensive desktop environment management system. In this mode, all the components of the desktop are virtualized, which allows for a highly flexible and much more secure desktop delivery model.
One of the main factors driving the market is the increased need to reduce desktop infrastructure costs. Enterprises across the globe are witnessing increased costs associated with desktop provisioning for their employees.
The procurement of operating systems and the supporting software is increasing the capital and operational expenditure associated with the systems. Enterprises are opting for hosting their infrastructure at a centralised location from which access to the systems is provided to end-users.
One of the main challenges is the need for high initial investment. Enterprises need to procure server infrastructure, a virtualization server, and the required software and high bandwidth support for enabling hosted virtual desktop solutions.
Some of the early adopters of hosted virtual desktop solutions on a trial basis are facing certain operational challenges which are preventing them from expanding their adoption.
Key players currently dominating the hosted virtual desktop market include Citrix Systems Inc., Microsoft Corp., Oracle Corp., and VMware Inc.
For more information on the hosted virtual desktop market, see the latest research: Hosted Virtual Desktop Market
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