Cost concerns drive virtualization rethink, but most enterprises are not fully ready

A new survey by one of the largest IT vendors reveals that while two-thirds of enterprises plan major changes to their virtualization strategies within two years—spurred by licensing changes from a leading virtualization software provider—only 5% consider themselves “fully ready” for such a transition.

The survey highlights widespread frustration over cost increases from that virtualization provider, with some European cloud providers reporting price rises of 800–1,500%. However, the IT vendor downplayed licensing as the top catalyst, noting that just 4% of respondents called it the “single biggest” driver. Analysts disagree: the CEO of a research firm argues that when including those who cite cost as a primary or important factor, roughly half the market feels a meaningful commercial impact. An IDC analyst adds that cost is clearly the number one driver for new virtualization projects, though the full picture is more complex.

Readiness remains a nuanced concept. While 21% of companies describe themselves as “largely ready,” true preparedness involves workload discovery, multiyear financial modeling, defined operating models, skilled teams, and tested rollback capabilities. The survey also finds that 17% of firms experienced rising cloud costs, largely due to AI usage rather than base price increases. Ultimately, the licensing shift is pushing enterprises toward hybrid cloud strategies, though experts stress that genuine integration—not just scattered assets—is needed for real transformation.

Based on networkworld.com story by Maxwell Cooter, FEBRUARY 12, 2026