Flash Research Paper – Virtualization
Flash Research Paper – Virtualization
Our current server infrastructure is very inefficient. I recommend that we change our infrastructure into a mix of Virtual Machine (VM) Servers and Physical Servers. By doing so, we will save $9,200,000 over three years. Virtualization of our servers will allow us to minimize the number of servers we purchase by consolidating more servers into a single machine. This will decrease our costs while increasing our efficiency.
Virtualization of our servers will reduce costs on hardware, as we will need to purchase less servers and will have decreased operational costs. 80% of our physical servers can be run as VM’s and a single VM Server can hold 10 physical servers. Due to the efficiency of VM Servers, we will only need to purchase 80 VM Servers and 200 physical servers instead of 1,000 physical servers. Physical servers can only run a single operating system whereas virtual machines can run multiple systems on a single server, for example, the finance server, marketing server and accounting server could all be placed on a single VM server rather than three separate servers.
Upgrading our servers will decrease our costs by 65.71%. We will save $6,480,00 during implementation in the first year and $1,360,000 in maintenance costs each year thereafter. Overall, our 3 year net cost will be $4,800,000 resulting in a 3-year net benefit of $9,200,000.
| Number Needed | Server Cost | Maintenance Cost | Total Cost | ||
| Current | Physical | 1,000.00 | 8,000.00 | 2,000.00 | 10,000,000.00 |
| Virtualization | Virtual | 80.00 | 16,000.00 | 3,000.00 | 1,520,000.00 |
| Physical | 200.00 | 8,000.00 | 2,000.00 | 2,000,000.00 | |
| 3,520,000.00 |
| Year 1 | Year 2 | Year 3 | ||
| Current Cost | 10,000,000.00 | 2,000,000.00 | 2,000,000.00 | 14,000,000.00 |
| Virtualization Cost | 3,520,000.00 | 640,000.00 | 640,000.00 | 4,800,000.00 |
| Net Benefit | 9,200,000.00 | |||
| Change in Costs (%) | -65.71 | |||
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