MIS 2501 FLASH RESEARCH PAPER #2

Jace Jinho Park

There is an opportunity for our company to save more than $9 million in the next three years by consolidating our datacenter servers using virtualization. Purchasing and maintaining servers is expensive for our company and current method of maintaining physical servers is inefficient. Virtualization, will cut the maintenance cost significantly, which will prepare our company to grow larger with reduced costs.

Virtualization works by creating virtual servers from one physical server to consolidate and reduce the hardware requirements by the ratio of 10:1 or better. Meaning that with virtualization, one physical server is able to run 10 virtual servers. Not only does virtualization allow us to consolidate server workloads, it will reduce our cost significantly. Virtualization will allow us to run 80% of our servers under VMware, which means that we will only need 200 physical servers and run the other 800 servers with 80 virtual machines.

While purchasing a virtual server is costly, $16,000 per server, the total cost to purchase and maintain virtual servers will run on much lower than that of physical servers. Maintaining physical servers will cost us $14 million in three years while virtualization will only cost us $4.8 million. We are able to save more than $9 million, reducing the cost by more than 65% in the next three years. It is no doubt that more datacenter and servers will be required as we grow and enter into the global market. It is crucial for our company to start investing in the virtualization to have a sustainable method of maintaining our servers. In the near future, my team. By investing in virtualization now, we will be one of the first movers into this technology, which will set our company into the right direction of leading the market.

Works Cited

“Virtualization Basics.” , What Is Virtualization: VMware. N.p., n.d. Web. 10 Feb. 2015.

“Virtualization.” What Is ? N.p., n.d. Web. 09 Feb. 2015.

“Virtualization.” Wikipedia. Wikimedia Foundation, n.d. Web. 11 Feb. 2015.