Flash Research: Virtualization
Datacenter Build with Virtual Machines
Our company can save $9,200,000 over three years by incorporating server virtualization into our new datacenter build. We can reduce the purchase of 1,000 servers to just 280. The implementation will downsize our datacenter, simplify our disaster recovery plan, and improve our energy efficiency. In addition, server administration will be more centralized, reducing maintenance costs by $1,360,000 annually.
Virtualization is a technology that allows a single physical server to simultaneously run multiple virtual servers, each running its own operating system and applications. Each virtual machine is encapsulated, independent of each other; all data is secured within each virtual machine. This enables each physical server to deploy a variety of services, regardless of operating system or platform. Virtual machines are snapshots that can be easily transferred to a different physical server; this allows for faster re-deployments when a physical machine fails, providing easier disaster recovery. Fewer physical machines means less energy and fewer hot aisles. Reducing heat means lower cooling costs.
A datacenter consisting of 1,000 physical servers at $8,000,000 to purchase and $6,000,000 to maintain would result in a three-year $14,000,000 benefit. Introducing virtualization into the datacenter build consolidate the number of servers to 280. The server purchases and maintenance would incur a three-year cost of $4,800,000. The new datacenter can be maintained for three years for less that it would cost to run a physical datacenter in just a single year. We will reduce our physical servers by 72% and our overall costs by 66%. Virtualization will yield a higher return on investment with a three year net benefit of $9,200,000.