Can Your Business Afford to Not Switch to Virtualization?
The great thing about virtualization is that it promotes efficient resource management and the ability to provision server, storage, and application resources dynamically. There are three ways in which virtualization achieves this:
- Makes better use of IT assets by significantly improving server utilization and sharing I/O resources.
- Improves business responsiveness and operational speed by dynamically re-allocating resources to applications as needed.
- Simplifies the management of IT infrastructure by making workloads independent of hardware resources.
Will this reduce or slow down your company's IT spending? The first step toward assessing if it will requires getting a firm grasp on the operation costs for the current infrastructure and resources. This includes both the direct costs and indirect costs.
The direct costs start with the hardware and its maintenance. Be sure to consider in your calculations: What is the expected life of the hardware? What is its rate of utilization? What are future growth expectations? How often have there been hardware failures?
When calculating direct costs you must add in software licenses. How many licenses are you paying for annually? How many machines are running those applications? Are you considering new applications?
Facility costs also factor into direct costs. What are you paying for space for IT facilities, data transmission and power?
What are the labor costs required to support the current system?
Then there are the indirect costs. These are somewhat subjective but still measurable. For example, what is the lost opportunity cost of IT techs spending time on maintenance instead of on evaluating software that might support the business in meeting its goals?
On the other side of the ledger, the benefits of virtualization are readily identified. With server virtualization, one physical server via partitioning can behave as multiple logical servers. Each independent logical server, or virtual machine, can run different applications and is a unique functioning server from a system point-of-view. This creates the potential for significant consolidation.
Real Cost Savings in Virtualization with DataHive
Begin the savings calculation. With virtualization, IT technicians have fewer machines to maintain. This creates opportunities for more productive deployment of these resources to other projects or for direct savings through reduced numbers.
Power consumption and cooling can also be affected due to the reduction in servers.
Businesses can see a direct reduction in software licensing costs.
The gross savings from server virtualization can often run as high as 20% a year. Through these savings virtualization usually pays for itself anywhere from within the first year to the third year after implementation.
The wonder of virtualization is that dramatic improvements in cost and efficiency can take place without sacrificing performance.
Virtualization is a sound business choice. It reduces costs, simplifies IT, and delivers solid business value.