2024 China Virtualization Market Research Report: ZStack Enters the Leaders Quadrant, Ranking First
In November, CCID Consulting released the “2024 China Virtualization Market Research Report” (hereinafter referred to as the “Report”), which provides an in-depth analysis of the current state, market size, competitive landscape, and future trends of the Chinese virtualization market. This report offers valuable market insights and strategic recommendations for enterprise users in their selection process. According to the report, driven by both policy and market demand, virtualization, as an essential software for digital infrastructure, is undergoing significant transformation in the Chinese market. ZStack, with its outstanding technological innovation and market performance through the ZStack ZSphere virtualization platform, has entered the leaders quadrant, ranking first among cloud vendors.
The report focuses on the server virtualization market, considering server virtualization software products as the primary basis for market size statistics, excluding hardware, consulting, and maintenance services.
Regarding market size, the report indicates that in 2023, the Chinese server virtualization market size was approximately USD 690 million, representing a year-on-year growth of 14.7%. Over the next three years, with the increasing demand for infrastructure security upgrades across various industries and the growing need for virtualization stock replacement following VMware’s service model adjustments, the virtualization market is expected to maintain strong growth momentum, with the market size projected to reach USD 1,051 million by 2026.
In terms of market competition, the report highlights that the Chinese server virtualization market is characterized by a competitive landscape involving server vendors, cloud computing vendors, third-party software vendors, and HCI vendors. As a representative of cloud vendors, ZStack’s product Porifolio covers virtualization,HCI, private cloud, and cloud native solutions, effectively covering VMware’s core data center product line and earning the trust of over 4,000 enterprise customers. ZStack has strengthened its presence in the virtualization market, offering virtualization products independently or bundled with cloud platforms and HC Isolutions, therefore quickly gaining widespread recognition among enterprise customers and entering the leaders quadrant as the only cloud vendor in this category.
From a market trend perspective, the report identifies several key points:
1、Security and stability remain top priorities for virtualization users. The ZStack ZSphere virtualization platform, as ZStack’s server virtualization platform, features high autonomy, stability, performance, and security. It offers a consistent user experience with VMware vSphere virtualization, with intelligent unified operations and maintenance, and seamless V2V migration. It can meet the needs for secure and reliable data center infrastructure upgrades, supporting online cross-version hot upgrades and providing gray upgrades to ensure business reliability. Additionally, it offers security group functions (east-west firewall) to ensure business security and reliability.
2、Virtualization products with diverse architectures and strong compatibility are more favored by users. ZStack is committed to a self-developedtechnology roadmap, with its products receiving the first batch of Trusted Cloud (TRUSTED CLOUD) one-cloud-multi-chip certification from the China Academy of Information and Communications Technology. It supports both x86 and non-x86 environments, offering strong compatibility and the ability to manage VMware virtualization resources. It features elastic bare metal capabilities, enabling one-click seamless upgrades and unified management of virtual machines and bare metal.
3、The demand for software-hardware decoupling places higher demands on virtualization software capabilities, requiring adaptability to multiple servers without hardware binding. ZStack products focus on the reuse of users’ existing IT infrastructure, are compatible with various old server brands, and can interface with centralized storage. The ZStack ZSphere virtualization platform is widely compatible with mainstream server manufacturers, enabling cross-generation and cross-model CPU unified clustering, unified reuse of multi-brand servers, and unified management and scheduling of data center resources, therefore preventing asset loss and waste, and protecting investments.
4、Virtualization and containers complement each other, with hybrid deployment models gradually increasing. Notably, ZStack offers hybrid deployment models for virtualization and containers in both data center and edge scenarios: in data centers, it provides the ZStack Zaku container cloud platform and virtualization and cloud platform combinations; in edge scenarios, through the ZStack Edge cloud-native HCI unique “container + virtualization” dual-engine parallel operation architecture, virtualization and container hybrid deployment extends to edge deployments. In July 2023, it passed the first batch of Trusted Cloud (TRUSTED CLOUD) “HCI cloud-native scenario technical capability” evaluations by the China Academy of Information and Communications Technology.
The development of AI technology will bring new vitality to the virtualization market. ZStack has launched the AIOS platform Zhita for the intelligent computing center market, serving as an AI Infra platform. It not only enables unified management of different CPU architectures at the intelligent computing layer but also realizes GPU virtualization across different architectures, driving innovation and diversification in the virtualization market. This enhances the adaptability of virtualization technology and meets users’ expectations for future intelligent IT architectures.
ZStack has served customers in over 30 countries and regions worldwide. In 2024, ZStack officially launched its Globalization 2.0 strategy,, deepening international partnerships, focusing on resources and investment, continuously increasing penetration in the Asia-Pacific region, and aiming to become a significant global provider of intelligent computing platforms . The ZStack ZSphere virtualization platform is one of the core products for achieving this Globalization 2.0 strategy, with successful VMware-to-ZStack Solution practices, including a Managed Service Provider in Australia, an International Bank in Hong Kong , China, a Top Conglomerate in Cambodia, and a Top ISP in Indonesia.
About CCID Consulting
CCID Consulting Company Limited (referred to as “CCID Consulting”) is affiliated with the China Center for Information Industry Development (CCID) under the Ministry of Industry and Information Technology. It is the first listed consulting firm in China (stock code: HK02176). Adhering to the philosophy of “Thought Creates the World” and practicing the core values of “Integrity, Responsibility, Pragmatism, and Innovation,” CCID Consulting provides innovative comprehensive services and digital empowerment services, including “Research + Consulting + Implementation,” to governments, industrial parks, and enterprises.
