Vates Evolves Open Source Virtualization in the U.S. - Industry Today - Leader in Manufacturing & Industry News
 

February 24, 2026 Vates Evolves Open Source Virtualization in the U.S.

Global open source virtualization company Vates announces significant acceleration of investment and effort in the North American market.

vates

(New York, NY) Vates, a global open source virtualization company, announces significant acceleration of investment and effort in the North American market, driven by several years of strong growth of its operations in the United States. After more than a decade of profitable development and organic adoption in North America, the U.S. is Vates’ largest and fastest-growing market, with more than 500 enterprise customers already using its virtualization platform in production. The company is now strengthening its U.S. presence to support accelerating enterprise demand for alternatives to proprietary virtualization platforms.

Virtualization under pressure as the market consolidates    

Virtualization remains a cornerstone of modern IT infrastructure, enabling organizations to run multiple workloads securely and efficiently on shared hardware. But recent consolidation in the market, most notably following VMware’s acquisition by Broadcom, has triggered widespread concern over rising costs, vendor lock-in, and long-term predictability.

“Virtualization has become a strategic issue, not just a technical one,” said Olivier Lambert, CEO and Co-Founder of Vates. “Organizations want control over their infrastructure again. At Vates, our software is 100% open source, and customers stay with us by choice, not because they’re locked in.”

A long-time contributor to the Xen ecosystem, Lambert has been actively involved in virtualization technologies for more than a decade. He is best known for leading the development and growth of XCP-ng and Xen Orchestra, two widely adopted open-source projects used by enterprises, service providers, public sector organizations, and research institutions worldwide.

A license-free, fully open source virtualization model           

Unlike traditional vendors, Vates does not sell software licenses. Its virtualization stack is fully open source, with revenue generated through enterprise support, professional services, and operational expertise, an approach designed for infrastructure that sits at the heart of business-critical systems.

Vates’ customer growth is being driven by two main segments: enterprises actively migrating away from VMware in search of cost stability and architectural continuity, and organizations philosophically committed to open source, transparency, and independence from proprietary vendors.

“When we evaluated Vates VMS (XCP-ng and Xen Orchestra), the inherent value was clearly higher than what we saw from competing virtualization platforms,” shared Chuck Colby, IT/OT Solutions Architect for Nor-Cal Controls.

Across both profiles, Vates reports renewal rates above 90%, underscoring strong customer confidence right out of the gate and ongoing.

To simplify enterprise adoption, the company introduced Vates VMS (Virtualization Management Stack), an integrated offering that allows organizations to evaluate Vates directly against VMware at the solution level. Migration from VMware is intentionally designed to be straightforward, reducing operational risk and complexity.

“Our differentiation is simple,” Lambert added. “We don’t sell licenses. We sell trust, reliability, and long-term independence.”

 A seasoned industry leader thriving in the U.S. market      

North America is Vates’ largest and fastest-growing market, supported by U.S.-based enterprise support and professional services teams. Founded in Grenoble, France, Vates has been profitable for over a decade and serves more than 1,000 customers worldwide. Developed in France and compatible with all major hardware platforms, its solutions are designed for sensitive and mission-critical environments.

To learn more, visit https://vates.tech/en/ on LinkedIn, X @vatesfr and YouTube @vatestech.

About Vates
Founded in 2012 in Grenoble, France, Vates is a global open source software company specializing in enterprise virtualization and infrastructure management. Its flagship technologies, XCP-ng and Xen Orchestra, provide a fully open source, license-free alternative to proprietary virtualization platforms, enabling organizations to run business-critical workloads with greater control, cost predictability, and long-term flexibility.

Vates serves more than 1,000 customers worldwide across enterprise, public sector, service provider, and research environments. Profitable for over a decade, the company delivers its solutions through a model centered on enterprise support, professional services, and operational expertise, combining open source transparency with production-grade reliability.

 

Subscribe to Industry Today

Read Our Current Issue

The Rise of American Manufacturing: A New Industrial Era

Most Recent EpisodeScaling Manufacturing Worldwide: Scott Ellyson’s Leadership Playbook

Listen Now

Scott Ellyson, CEO of East West Manufacturing, brings decades of global manufacturing and supply chain leadership to the conversation. In this episode, he shares practical insights on scaling operations, navigating complexity, and building resilient manufacturing networks in an increasingly connected world.