Technavio Study: Burgeoning Demand for Cloud-Based Applications Driving Global VDI Market

The global VDI (virtual desktop infrastructure) market is predicted to reach over USD 14 billion by 2020, according to the latest research report released by Technavio Research. While the overall VDI penetration rate against commercial PCs was around 9% in 2015, it is likely to cross 40% by 2020. The market is now witnessing an emergence of cloud-based VDI solutions that are less expensive than traditional on premise VDI solutions.

This report by Technavio Research, titled ‘Global VDI 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging trends.

“Most organizations are witnessing the benefits of VDIs such as reduced costs and easier management,” said Technavio’s industry analyst for data center research, Rakesh Panda. “These advantages, along with cloud-based VDI solutions, are driving the global VDI market. Market penetration of VDI was highest in developed regions such as the U.S. and Western Europe, a trend that is likely to continue with the adoption of VDI solutions by SMEs during the forecast period.”

Some of the other driving forces behind the growth of the global VDI market include:

  • Increased adoption of BYOD at the workplace
  • VDI would offer better savings with regards to desktop solutions
  • Steady demand for VDI from the Americas

BYOD Trend

vdi cloud desktopsChanging business needs are driving companies to find new ways of enhancing productivity and employee satisfaction. BYOD (bring your own device) is an emerging concept in this regard, believed to make employees more mobile and productive. In this system, employees of a company are encouraged to use their own mobile devices to access official data and systems from any location as per their convenience.

In VDI architecture, centralized data is stored on the main server for BYOD users to experience “ease of access, mobility, and date security” on the go. It enables BYOD users to access VDI images stored on the centralized storage environment via browsers or apps. As data is stored in the cloud and not on end-user devices, security would be heightened. Owing to these benefits on offer, VDI architecture is expected to gain a greater market share during the forecast period.

Reducing Costs

By implementing VDI, companies that have adoption rates ranging from 200 to 500 seats/ employees would experience major savings, while providing better computing experiences and enabling faster allocation of computing resources over a network. Virtual desktop solutions would also provide better manageability, scalability, and security to enterprise data and applications.

By adopting VDI, companies are expected to make their internal processes more adaptable to changes in technology. As it has become a priority for enterprises to smoothen workflow and reduce hindrances such as time zone barriers and remote work locations, the demand for VDI is expected to witness robust growth over the next four years.

Steady demand for VDI from Americas

There are many companies in the Americas region that avail computing services through data center facilities in the region. As the Americas region is a hub for these facilities, rapid adoption of cloud computing and cloud-based services is augmenting the adoption of virtual desktop infrastructure in these facilities to improve productivity, according to Technavio Research.

The Americas was the major contributor to the global VDI market in 2015 and had a market share of around 43% due to the early adoption of VDI technology in the region. Increased computing requirements of companies and the need for faster and reliable computing solutions, is expected to further increase the demand for desktop virtualization in the region.