Community Platform
Interests
  • Accounting information systems (AIS)
  • Business analysis
  • Business to Business (B2B)
  • Client server
  • more...
This Year
No Points
Total
615 Points
MIS Badge

Click here
to validate the recipient

Flash Research Paper- Virtualization and Cloud Computing

Katie Margraf

Flash research assignment #2

Virtualization and Cloud Computing

Our company can save $9,200,000 in three years if we convert our current servers into virtual machines using VMware. Running multiple virtual machines on a single server is called server consolidation and can reduce cost of downtime. By consolidating our servers the company will save millions of dollars in three years.

If our company implements virtual machines using VM ware it will allow eight hundred servers to run on only eighty machines. This is an example of the main benefit of server consolidation. Server consolidation can improve business continuity with ten servers now running on a single machine using VMware. By implementing virtual machines, it will reduce downtime. Also, server consolidation reduces time and money spent on maintenance.

Investing in VMware has an initial cost of 3.5 million dollars. If our company does not implement VMware servers we would spend around 14 million dollars on traditional servers in three years. While implementing mostly VMware, we are only spending 4.8 million dollars on implementation and maintenance equaling a net benefit of over 9.2 million dollars.

 

Traditional Servers Year 1 Year 2 Year 3 Total
Implementation $8,000,000 0 0 $8,000,000
Maintenance $2,000,000 $2,000,000 $2,000,000 $6,000,000
         
Total $10,000,000 $2,000,000 $2,000,000 $14,000,000
         

 

 

 

80 VMware

200 Traditional

Year 1 Year 2 Year 3 Total
80 VM
Implementation
$1,280,000 0 0 $1,280,000
200 Traditional $1,600,000 0 0 $1,600,000
VM Maintenance $240,000 $240,000 $240,000 $720,000
Traditional Maintenance $400,000 $400,000 $400,000 $1,200,000
Total $3,520,000 $640,000 $640,000 $4,800,000

 

 

 

  Year 1 Year 2 Year 3 Total
Benefits $6,480,000 $1,360,000 $1,360,000  
Net Benefit       $9,200,000

 

Works Cited

“Top 10 Benefits of Server Virtualization.” InfoWorld. N.p., n.d. Web. 11 Feb. 2015.

“Virtualization Basics.” Advantages of Virtualization: VMware. N.p., n.d. Web. 11 Feb. 2015.

Wallen, Jack. “10 Benefits of Virtualization in the Data Center.” Tech Republic. N.p., 10 Apr. 2013. Web. 12 Feb. 2015.


Skip to toolbar