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Data Center News > Blog > Global Market > Cost is driving enterprises to rethink virtualization, but most aren’t ready yet
Global Market

Cost is driving enterprises to rethink virtualization, but most aren’t ready yet

Last updated: February 17, 2026 8:44 am
Published February 17, 2026
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How prepared are you?

The HPE survey additionally reveals that simply 5 % of corporations planning these advanced virtualization tasks are “totally prepared”. However, once more, there are some semantics at play right here because the analysis additionally reveals that 21 % are “largely prepared”.

Chen mentioned that it was onerous to course of the small print. “Trying on the timeline, these are multi-year tasks. The actual fact that they’re speaking about technique implies one thing that’s trying into the long run.”

Gogia mentioned that the 5 % declare relies upon completely on how readiness is outlined. “If readiness means consciousness, then the determine is just too low. Most enterprises are conscious. If readiness means having a board-approved, risk-modelled, skill-funded, rollback-tested migration manufacturing unit that may execute at scale with out destabilising operations, then single-digit readiness is believable,” he added.

He set out 5 circumstances for readiness. “First, full workload discovery and dependency mapping, not partial inventories. Second, monetary modelling that compares keep versus diversify eventualities over a multiyear horizon. This can embrace licensing trajectory and worker value for migration. Third, corporations want an outlined goal working mannequin. Then there must be alignment of expertise, for instance, safety groups educated on hybrid governance. Lastly, there must be examined rollback functionality.”

One of many details of the HPE survey is the drive in direction of a hybrid cloud technique. However Chen identified that, once more, the definitions must be higher defined. “How do you outline hybrid? It appears to return in lots of varieties, for instance, individuals have a distributed setting. Or there may silos of processes in public cloud, whereas others are on-prem. I feel you need to present greater than having property on each side. I would favor hybrid cloud to be one thing that’s really built-in.”

See also  Cisco Cuts Thousands, Looks to Profit as Enterprises Prep for AI

One side of the HPE survey the place there’s common settlement is the 17 % of respondents who skilled enhance in cloud prices. HPE put this right down to the rising use of cloud for AI utilization. “I feel that’s proper,” mentioned Chen. “I don’t discover that base prices are rising, it’s purely a rise in AI.”

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