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Why Virtualization?

Cost savings can easily be in the millions.

The two major cost factors are Server Cost and Power and Cooling Savings. Some of the other major cost factors are Data Center Real-estate, Server Provisioning, and Server Management. The second benefit of virtualization is to increase server utilization - the average server utilization is only 5% and the peak load is only 20%.

• Reduce your server cost by 83%
• 1 server virtualized saves on average $963 and 9636 kHw per year
• Operation costs can be four times the cost of the server
• Reduce your server operation costs by $25,000 to $30,000 per host
• The electricity required to power a single server equals 6 tons of C02
• A typical server costs $10,000, and all companies just put one application on one server (ie server sprawl)
• Let’s explore the following example:
• 100 x $10,000 = $1,000,000 in server costs in a typical 3 Yr cycle. Therefore every 3 years it costs another 1 million dollars.
• Let’s talk about power: Every server watt needs a watt for cooling. A typical server is 500 watts, so at $0.10/kwh, that is $262,000 over 3 years, to manage a server is 4 x the server cost we will leave that out so are TCO is $1,262,000

Lets Virtualize the 100 severs, on average you get a 10 to1 ratio so instead of 100 servers we buy 10 Servers at $15,000 each and the power is 750Watts, 10TB of Storage.

Here is your new TCO $150,000 for servers $39,420 + Storage $80,000

Total Virtualization TCO $269,420

Savings $992,580 in hard costs