Procurement Market Intelligence Report
Virtual Machine Software
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Virtual Machine Software Global Overview
Definition
Summary
Virtual machine software allows users to run separate or multiple operating systems on a single computer. For example, a buyer can use virtual machine software to run Linux programs within a Windows interface. There are many applications for virtual machine software. Users can use it to access stored information specific to an application (typically legacy) that is accessible only by certain operating systems. They can also use it to aid software development and implement temporary server hosting or security to experiment with applications that could otherwise be harmful to the host computer. Key buyers include large enterprises, small and medium-sized businesses, cloud service providers, educational institutions, and government agencies seeking to enhance their IT infrastructure and operational efficiency.
This Report Includes:
- Licensed Virtual Machine Software
- SaaS Virtual Machine Software
Not in this Report:
- Operating System Software
- Cloud Computing Technology
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Global Virtual Machine Software Procurement Trends
Discover the top international trends affecting procurement in the global Virtual Machine Software market.
Warning Trends
Russian invasion of Ukraine is putting additional strain on US chip supply
- Until recently, the United States sourced nearly all of its neon gas (an essential material in the laser imprinting process to produce semiconductors) from Ukrainian and Russian producers. Previous conflicts between the two nations, specifically related to the Crimea conflict in 2014, resulted in a nearly 600.0% increase in the price of neon.
- The Russian Ministry of Industry and Trade announced in early June that it would be limiting neon gas exports as part of its sanctions against countries it views as unfriendly. This move will add to lead times and prices for neon.
- Downstream semiconductor manufacturers keep stockpiles of neon gas that have allowed them to continue manufacturing chips, though it is unknown how long these stockpiles will last. Semiconductor manufacturers will likely pay higher prices for neon gas outside Ukraine as global supplies dwindle.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Virtual Machine Software Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 655 |
| #2 United States | 500 |
| #3 China | 325 |
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Geography Drilldown - US
Average Cost of Virtual Machine Software
United States
2026 Market Pricing$0.00 to $XX,XXX.XX
per licenseAverage Price
Prices in the Virtual Machine Software market range from $0.00 to $XX,XXX.XX, depending on Features, Hosting, System Capacity, Contract Length and Intellectual Property Ownership. For example, lower prices are associated with Entry-level package ($0.00 to $1,400 per license), whereas higher prices are associated with Enterprise features ($1,400 to $10,000 per license).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Virtual Machine Software Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Virtual Machine Software market, prices in the US have grown 2.5% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Virtual Machine Software
Total cost of ownership is High in the Virtual Machine Software market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Obsolescence may raise the total cost of ownership unexpectedly.
Negotiated Before
Installation
Billed During
Hardware
Utilities
Support
Unforeseen
Obsolescence
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.9 in the United States. Buyer power is most positively impacted by Availability of Substitutes. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Operating Systems & Productivity Software Publishers
- Computer Manufacturers
- Intellectual Property Licensers
- Data Processing & Hosting Services
2nd
Tier Suppliers
- IT Consulters
- Semiconductor & Circuit Manufacturers
- Law Firms
- Wired Telecommunications Carriers
Biggest Virtual Machine Software Suppliers in the US by Revenue
The largest Virtual Machine Software vendors by revenue in the US are Microsoft Corporation, Citrix Systems, Inc. and Apple Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Broadcom Inc. | Global | PALO ALTO, CA | >10,000 | 10-15 | ||||
| Citrix Systems, Inc. | Global | FORT LAUDERDALE, FL | 1,001-10,000 | 10-15 | ||||
| Microsoft Corporation | Global | Redmond | >10,000 | 15-20 | ||||
| International Business Machines Corporation | Global | ARMONK | >10,000 | 5-10 | ||||
| Oracle Corporation | Global | AUSTIN, CA | >10,000 | 5-10 | ||||
| Apple Inc. | Global | CUPERTINO | >10,000 | < 5 | ||||
| Dell Technologies Inc. | Global | ROUND ROCK | >10,000 | < 5 | ||||
| Cisco Systems, Inc. | Global | SAN JOSE, CA | >10,000 | < 5 | ||||
| Hp inc. | Global | PALO ALTO | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Virtual Machine Software market is 17.3% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Market share concentration in this market is high, meaning that the top four vendors earn more than 45% of the market's total revenue. As a result of high market share concentration, the top vendors in this market, who are mostly global tech conglomerates, have significant price-setting power.
Average vendor risk is very low due mainly to high average profit levels among vendors. As a result, it is very unlikely that a company in this market will exit the market for financial reasons.
Supply chain risk is low in this market, meaning buyers are unlikely to experience price changes or reduced availability. The low level of supply chain risk reflects vendors' minimal reliance on physical goods and distributions networks to provide their software.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises.
Supplier Information
Broadcom Inc.
Broadcom Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include central processing units, transistors, database management systems, network security equipment, wireless access points. Founded... Subscribe to learn more
Citrix Systems, Inc.
Citrix Systems, Inc. is a public company operating globally in the information sector. The company's offerings include load balancing software, virtual data room software, enterprise mobility management software, digital transaction management software, mobile device management software. Founded in 1989, Subscribe to learn more
Microsoft Corporation
Microsoft Corporation is a technology company offering digital technology and artificial intelligence (AI) to businesses and individuals worldwide. It develops cloud-based solutions that deliver customers with software, services, platforms, and content and provides solution support and consulting services.... Subscribe to learn more
International Business Machines Corporation
International Business Machines Corporation (IBM) is a global integrated computer technology, hardware, software, and services provider. It organizes its business into four segments: Software segment, which provides software solutions for a hybrid cloud platform, data and artificial intelligence, automation,... Subscribe to learn more
Oracle Corporation
Oracle Corporation is a global technology company that provides enterprise information technology (IT) products and services. It comprises three businesses: the Cloud and License business, which offers Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, deployed using... Subscribe to learn more
Apple Inc.
Apple Inc. is a public company operating globally in the manufacturing, information and real estate and rental and leasing sectors. The company's offerings include central processing units, smartphones, laptop computers, desktop computers, tablet computers. Founded in 1976, the company is currently headquartered... Subscribe to learn more
Cisco Systems, Inc.
Cisco Systems, Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include rail signaling systems, office phones, print servers, computer servers, database management systems. Founded in 1984, the... Subscribe to learn more
Corel Corp
Corel Corp is a private company operating globally in the information sector. The company's offerings include graphics & photo imaging software, data management & query software and virtual machine software. Founded in 1985, the company is currently headquartered in Ottawa, Ontario, Canada with an estimated... Subscribe to learn more
Dell Technologies Inc.
Dell Technologies Inc. is a global provider of comprehensive information technology solutions, products, and services. It organizes its business into two segments: the Infrastructure Solutions Group, which offers multi-cloud and big data solutions to simplify, streamline, and automate cloud operations, and... Subscribe to learn more
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Procurement Management KPIs for the Virtual Machine Software Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Effort Score. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Uptime and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Average time between an incident report and its resolution |
If users experience problems with the virtual machine software due either to problems with the software or user error, vendors with better support services can resolve the issue quickly and minimize productivity losses. For minor issues, buyers should look for vendors with an average resolution time below 2 hours, while an average resolution time below 8 hours is preferable for major issues. |
| Customer Effort Score |
|
User effort score feedback |
Customer effort score refers to a metric used to rate the ease of use of a software product based on averaging simple user feedback. By measuring ease of use with this metric buyers can make informed decisions about streamlining their IT infrastructure. Buyers can ask for this information during the purchasing process to better compare multiple vendors' software or can collect internal user feedback after the purchase to gain insight into how well internal stakeholders are able to utilize the software. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
How long has your firm been providing virtual machine software?
Do you offer case studies or testimonials from past clients?
Value-Added Services
Do you offer value-added services to help buyers maintain performance or optimize their virtualized infrastructure?
How do you assist buyers in determining the total cost of ownership and return on investment throughout the purchasing process?
Cost Containment
How much of your revenue is set aside for ongoing research and development? Has this investment increased or decreased in recent years?
Do you regularly use automation in your services? How has this boosted profitability? How can this benefit buyers?
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Virtual Machine Software RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide a general overview of their business, including the IT requirements they have.
Buyers should state the features of the virtual machine software that they desire.
Statement Of Need
Buyers should specify the exact number of users required.
Buyers should specify the complexity of their IT infrastructure.
Project Budget
Buyers should specify the total budget for their virtual machine software.
Buyers should include details about license usage expectations and limitations.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
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- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
