SWsoft Industry's Fastest-Growing Supplier of Virtualization Technology

HERNDON, Va., October 26, 2006 – Operating system virtualization software Virtuozzo from SWsoft is growing fastest among all vendors — 98 percent — in the hot overall market for virtualization technology, according to industry analyst firm IDC. The worldwide industry sales of virtualization software experienced a 67 percent growth rate from 2004 to 2005 – with revenues topping $560 million.

According to IDC, the virtualization market is expected to grow to $15 billion worldwide by 2009. The proliferation of servers in the data center has led to increased complexity and costs. Virtualization helps to reverse this trend by dramatically reducing the need for adding physical servers and their associated capital, power, software and management costs.

"Our sales momentum is a reflection of our highly-efficient operating system-level Virtuozzo technology, along with its management capabilities for physical servers and virtual environments," said Serguei Beloussov, CEO of SWsoft. "We will enhance those with management and automation tools that will allow customers to further maximize the benefits gained through virtualized resources."

Virtualization Efficiency and Manageability
By consolidating virtual environments on physical servers, IT managers can reduce hardware costs, while increasing server utilization rates. The ability to effectively manage and automate a growing catalog of virtual assets ensures that complexity is reduced and that virtualization delivers cost savings.

"Overall, IDC views virtual machines as a foundational technology to the dynamic IT," said John Humphreys, program director with IDC's Enterprise Platform Group. "Virtualization, which decouples the application from the underlying hardware, allows the customer to create service oriented infrastructure whereby they can begin to manage services and employ policy-based automation to manage and deliver the underlying infrastructure." (1)

The IDC report also showed virtualization implementations on Linux experienced the fastest growth from 2004 to 2005 continuing the trend from the previous year. That trend is expected to continue through 2009.

Operating System-Level Virtualization
With SWsoft Virtuozzo operating system (OS)-level server virtualization technology, a single Linux or Windows OS instance can be dynamically partitioned into multiple, highly-efficient virtual environments. The low overhead of Virtuozzo allows for demanding workloads such as database and application servers to run inside virtual environments with near-native performance.

Also, Virtuozzo is the first and only virtualization technology that addresses the challenge faced by today’s datacenters of operating systems sprawl where a number of different operating systems require support, maintenance and updating. Overall, Virtuozzo provides efficiency and manageability that result in the lowest total cost-of-ownership and fastest ROI for customers.

About SWsoft
SWsoft is a recognized leader in server automation and virtualization software. With more than 10,000 customers in over 100 countries, SWsoft's suite of award-winning products delivers proven performance, manageability and value. SWsoft is a high-growth company funded by Bessemer Venture Partners, Insight Venture Partners and Intel Capital. For more information about SWsoft, visit www.swsoft.com.
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Bill Baker
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1 - IDC Report, "Worldwide Virtual Machine Software 2005 Vendor Shares, September 2006