Virtual desktop infrastructure (VDI) is a desktop virtualization technology that runs and manages a desktop operating system, often Microsoft Windows, in a data center. The virtual desktop image is provided to an endpoint device through a network, allowing the user to interact with the operating system and its apps as if they were running locally. The endpoint can be a computer, a laptop, or a mobile device. The key benefits of VDI are that it provides data security, reduces operating costs, and offers efficient and smooth processes. While using VDI, enterprises don’t have to purchase individual licenses, and they can control their infrastructure remotely. Owing to such factors, the VDI market is expected to reach $17.5 billion in 2025, growing at a CAGR of 11.4% during the forecast period (2019–2025).
Key Trends in the Virtual Desktop Infrastructure (VDI) Market
Growing Demand for Employee and Work Efficiency
After the surge of COVID-19 and lockdowns across the globe, the trend of remote work also grew. For instance, according to the American Community Survey, only 6% of Americans worked from home in 2019. However, according to the US Bureau of Labour Statistics, Current Population Survey, approximately one third of American workers worked remotely as of December 2020. The trend is still growing since most organizations and employees prefer remote work or working from home, resulting in increased demand for VDI. Employees can work remotely from their homes or outstations using VDI. They don’t have to wait for the system to be upgraded since, with VDI, both the hardware and the operating system can be upgraded quickly. Additionally, even if a device is corrupted or stolen, the data can be accessed from another device since the VDI solution allows employees to be hardware independent.
Demand for Cloud-Based VDI Solutions
Cloud-based VDI or desktop-as-a-service (DaaS) is a cost-efficient solution for companies. They can use cloud based VDI to rapidly supply IT resources without the difficulties of acquiring, deploying, configuring, and managing VDI infrastructure. Owing to such benefits of DaaS, companies are inclined towards it. Hence, the market players are also launching new solutions to meet this demand. For instance, in September 2022, at its AWS End User Computing Innovation Day, AWS announced that it plans to offer a fully managed VDI offering that is infrastructure-based called the Amazon WorkSpaces Core. Core will deliver a cloud based VDI that will be available via an API to third-party VDI management solutions. This API will enable third-party applications to programmatically deploy and maintain WorkSpaces desktops, which was previously not possible.
Data Security Demand
Due to increasing cases of data breaches in organizations, companies are opting for more secure and efficient solutions for their operations. For instance, in 2022, T-Mobile faced a data breach that cost the company $350 million. Additionally, in April 2023, Western Digital reported a data breach. Similarly, in February 2023, Atlassian, an Australian software business, reported a data leak. A hacker organization called "SiegedSec" claims to have broken into the company's networks and extracted data about employees as well as floor plans for offices in San Francisco and Sydney. The data included names, email addresses, departments in which employees work, and other information about their employment at Atlassian. Such cases increase the demand for secure work software or solutions.
Owing to this, VDI solution providers are launching new secure solutions for organizations. For instance, in January 2021, Cloud4C, the world's leading provider of cloud managed services, collaborated with Citrix to provide Citrix virtual apps and desktops solutions to organizations looking to utilize superior security and mobile workforce capabilities. With the development of growing teams and remote working, the cooperation between Cloud4C and Citrix enables organizations to deploy Citrix's virtual apps and desktops to any device throughout the workforce with simplicity and no interruption. Cloud4C's Virtual Desktop Infrastructure (VDI) solutions boost productivity and performance while also providing efficiency, security, and scalability.
Expansions and Innovations by Major Market Players
The VDI market has significant contributors such as Cisco Systems, Inc., Citrix Systems, Inc., Microsoft Corp., Oracle Corp., and VMware, Inc., among others. These players assist in the market’s growth with the launch of new and innovative VDI solutions and through collaborations and investments. Some of the recent developments in the market include-
• In April 2023, ControlUp, a pioneer in Digital Employee Experience (DEX) management, announced the newest edition of Real-Time DX 8.8, an end-to-end monitoring and troubleshooting solution for VDI and DaaS settings. ControlUp can now deliver monitoring, alerting, and remediation capabilities to Azure Virtual Desktop in the same manner it does for Citrix and VMware Horizon systems, owing to hundreds of new metrics, including 162 specifically for Azure Virtual Desktop.
• In January 2023, Leostream, the leading provider of enterprise-grade remote access solutions, announced that users of the Leostream Platform can now deploy secure, scalable, global VDI infrastructures on Amazon WorkSpaces Core, ensuring access to their usually needed desktops and applications hosted in AWS with the performance they require from any location.