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‘State of Virtualization’ Report Reflects Shifting Strategies

The way organizations approach virtualization is moving to building a future-ready foundation with flexibility, cost optimization and scalability.
Jul 16th, 2025 9:00am by
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The virtualization landscape is undergoing significant changes. According to Red Hat’s new “State of Virtualization” report, organizations are shifting the way they approach virtualization, considering cloud native opportunities, cost optimization and future scalability.

Here are a few key takeaways from the report and what they mean for the future of virtualization.

1. Cloud Native Thinking Is Shaping Virtualization Strategy

One of the most compelling trends in the report is the alignment of virtualization efforts with cloud native architectures. Many organizations aren’t choosing between virtual machines (VMs) and containers; they’re integrating them. While the majority of organizations have over half of their IT infrastructure virtualized (71%), 89% agree that a combination of virtualization, containers and automation accelerates development cycles, driving the need for platforms that can manage diversified workloads on a unified platform.

This hybrid approach not only applies to workloads but also to environments, with 85% of organizations reporting that they run workloads across the hybrid cloud. Enterprises are seeking solutions that offer flexibility to build and deploy unique workloads across adaptable environments.

2. Many Organizations Face Common Concerns and Are Making a Move

A majority of organizations (70%) report actively migrating some or all of their VM workloads to new or additional hypervisor platforms. While cost remains a key driver, so does management complexity, vendor lock-in and low confidence in long-term support and innovation.

These migrations aren’t just technical transitions; they reflect broader efforts to modernize infrastructure while maintaining control. Decision-makers are looking for platforms that allow them to migrate at their own pace with opportunities for future innovation and minimal business disruption.

3. Virtualization Is Becoming a Broader Platform Decision

This year’s findings show how virtualization is no longer seen as a standalone technology; it’s viewed as part of a broader platform strategy. The ability to run VMs and cloud native applications in a cohesive environment is emerging as a key requirement for IT leaders planning for long-term agility and innovation. Additional considerations organizations are looking for in a new virtualization platform include automation and AI-powered capabilities (38%), integration with existing IT infrastructure (37%), more innovation and modernization opportunities (36%), and a more unified environment for diverse workloads (34%).

This shift signals the need for platforms that are open, scalable and capable of supporting evolving workloads across diverse environments.

The bottom line: As organizations reevaluate their virtualization strategies, the focus is shifting from maintaining the status quo to building a future-ready foundation. The “State of Virtualization” report reinforces what many IT leaders already recognize: flexibility, integration and cost efficiency are key to navigating this transition.

Download the full report to explore these trends and insights in more detail.

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