Tyler Nelson

Major: BBA MIS
Graduation: May 2016


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Tyler Nelson

Flash Paper 2

Our company has an approaching hardware refresh cycle that requires us to purchase 1000 servers, and with the purchase of VMware our company will be looking at a net benefit of $9.2 million dollars over 3 years. With more and more companies choosing VMware to replace physical servers, this option makes the most sense for our company.

The advantages to VMware include much smaller space requirements, less heat buildup, and easier backups. VMware is virtualization software that allows you to run virtual servers on existing physical servers, thus requiring less hardware. With 800 of our company’s servers being consolidated to just 80 physical servers we will have far less hardware that will have to be stored, freeing up large amounts of space. Less servers means less heat buildup, and less heat results in fewer system issues and failures. Another benefit of virtualization is easier backups; virtual servers can be moved from one physical server to another and redeployed easily, meaning multiple backups and snapshots throughout the day are simple.

Our upcoming hardware refresh cycle without VMware would cost our company $8 million with an additional $2 million a year in maintenance costs, bringing the three-year total to $14 million. Conversely, with 80 percent of our servers running as virtual machines, our total installation costs would be $2.88 million, with $640,000 a year in maintenance costs. This is possible because 800 of our company’s servers are being consolidated to just 80. With a cost of only $4.8 million, our company will see a $9.2 million savings over three years.


Work Cited

Wallen, Jack. “10 Benefits of Virtualization in the Data Center.”TechRepublic. N.p., n.d. Web. 22 Sept. 2014.


“VMware.” What Is ? N.p., n.d. Web. 22 Sept. 2014.

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