Flash Research Assignment #2
Flash Research Assignment #2: Virtualization and Cloud Computing
Glenn Diener
I recommend that we utilize virtualization and cloud computing to consolidate server workloads and save money. 80% of our servers could run as virtual machines under VMware and we could consolidate 10 physical servers onto a single virtual machine server. Over a 3-year period, our total net savings will be $9.2 million.
In addition to reduced IT costs, virtualization enables businesses to get the most out of their investment in hardware and resources. Virtualization enables resource management, the critical practice of using constraints, scheduling and partitioning to increase the flexibility of computing environments. It also increases speed and efficiency, something that every company is looking to improve.
Being that every 10 physical servers can be consolidated into 1 virtual machine, 800 of our 1000 physical servers will be reduced down to 80 virtual machines. Over a 3-year period, this will cost $1.28 million to buy and $240,000 to maintain compared to buying 800 individual servers, which will cost $6.4 million to buy and $1.6 million to maintain. We will still need to purchase 200 individual servers, which will cost $1.6 million and $400,000 to maintain over a 3-year period. Overall, after a 3-year period, our total net savings will be $9.2 million.