Virtualization Report: New Trends in Strategic Transformation

The Red Hat report indicates that organizations are adjusting their virtualization strategies, shifting towards cloud-native, cost optimization, and scalability. Key trends include the integration of cloud-native architectures, migration actions under common concerns, and virtualization as part of platform decision-making. Flexibility, integration, and cost-effectiveness are crucial.

Translated from:‘State of Virtualization’ Report Reflects Shifting Strategies[1]

Author: Carolyn May

The virtualization field is undergoing significant changes. According to Red Hat’s latest“State of Virtualization” report[2], organizations are transforming how they handle virtualization, beginning to consider cloud-native opportunities, cost optimization, and future scalability.

Here are some key conclusions from the report and their implications for the future of virtualization.

1. Cloud-native Thinking is Shaping Virtualization Strategies

One of the most striking trends in the report is the alignment ofvirtualization work with cloud-native architectures[3]. Many organizations are not choosing between virtual machines (VMs) andcontainers[4]; rather, they are integrating them. While more than half of IT infrastructure in most organizations is virtualized (71%), 89% of organizations believe that the combination of virtualization, containers, andautomation[5] accelerates development cycles, driving demand for platforms capable of managing diverse workloads on a unified platform.

This hybrid approach applies not only to workloads but also to environments, with 85% of organizations reporting that they run workloads onhybrid clouds[6]. Enterprises are looking for solutions that can flexibly build and deploy unique workloads across adaptive environments.

2. Many Organizations Face Common Concerns and Are Taking Action

Most organizations (70%) report that they are actively migrating some or all of their VM workloads to new or additional hypervisor platforms. While cost remains a key driver, management complexity, vendor lock-in, and insufficient confidence in long-term support and innovation are also significant factors.

These migrations are not just technical transformations; they reflect broader efforts to modernize infrastructure while maintaining control. Decision-makers are seeking platforms that allow them to migrate at their own pace, with opportunities for future innovation while minimizing business disruption.

3. Virtualization is Becoming Part of Broader Platform Decisions

This year’s survey results indicate that virtualization is no longer viewed as a standalone technology; it is seen as part of a broader platform strategy. The ability to run VMs and cloud-native applications in a cohesive environment is becoming a key requirement for IT leaders planning for long-term agility and innovation. Other considerations organizations are looking for in new virtualization platforms include automation and AI-driven capabilities (38%), integration with existing IT infrastructure (37%), more opportunities for innovation and modernization (36%), and more unified environments for various workloads (34%).

This shift signals a demand for platforms that are open, scalable, and capable of supporting evolving workloads across diverse environments.

Bottom Line: As organizations reassess their virtualization strategies, the focus is shifting from maintaining the status quo to building a future-oriented foundation. The “State of Virtualization” report[7] reinforces what many IT leaders have already recognized: flexibility, integration, and cost efficiency are key to addressing this transformation.

Download the full report[8] for a more detailed understanding of these trends and insights.

Reference Links

<span>[1]</span> ‘State of Virtualization’ Report Reflects Shifting Strategies:https://thenewstack.io/state-of-virtualization-report-reflects-shifting-strategies/<span>[2]</span>“State of Virtualization” report:https://www.redhat.com/en/engage/state-of-virtualization-ebook<span>[3]</span>Alignment of virtualization work with cloud-native architectures:https://thenewstack.io/virtualization-and-containers-better-together/<span>[4]</span>Containers:https://thenewstack.io/containers/<span>[5]</span>Automation:https://thenewstack.io/pythons-automation-magic/<span>[6]</span>Hybrid cloud:https://thenewstack.io/forget-all-cloud-or-all-on-prem-embrace-hybrid-for-agility-and-cost-savings/<span>[7]</span>“State of Virtualization” report:https://www.redhat.com/en/engage/state-of-virtualization-ebook<span>[8]</span>Download the full report:https://www.redhat.com/en/resources/state-of-virtualization-ebook

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