Business Ideas

Saving your Business through Virtualization

One of the driving forces behind new server technology adoption’s the reduction of ongoing costs.  Virtualization has proven to provide businesses with a variety of different ways to realize TCO savings.  The total cost of ownership of a single server has continually increased as energy prices rise, space comes more valuable, and the value of data carries a premium.  Creating multiple virtual machines through virtualization consistently reduces the TCO of servers.

Fewer Servers to Buy, Service, and Manage

The most obvious way virtualization will save businesses money is by reducing the total number of servers a business needs.  First, this allows businesses to invest in fewer servers which decrease the required capital investment.  Second, fewer servers’ means less time required by IT staff to manage and maintain hardware and software.  Additionally, businesses gain the ability to sell servers which are no longer required.

IT Staff Spends Fewer Hours Performing Server Maintenance/Management

A significant cost of operating servers is tied to the IT staff.  The number of IT staff hours required to keep a server operating at an optimal level continues to rise.  Virtualization not only reduces the number of servers the IT staff must maintain, but it also provides access to a unique set of tools which automates many of the maintenance/management processes.  As an added benefit, virtual machines can be created in a matter of minutes utilizing a master template which speeds up the resource provisioning process.

Less Power Usage Means Lower Electricity Bills

Another way virtualization saves businesses money is by reducing power usage which means lower monthly electric bills.  Virtualization accomplishes this in two ways.  First, operating fewer servers simultaneously directly reduces power consumption.  Second, operating fewer servers simultaneously reduces the amount of energy required to effectively cool the server room.

Less Downtime Enhances Employee Productivity Business-Wide

Virtualization provides businesses with a variety of capabilities which reduce downtime, thus enhancing employee productivity business wide.  Not only does this reduce the total cost of ownership, but it also increases the productivity potential of employees.  Some of the capabilities virtual machines provide include a built in fail over, multiple layers of redundancy, load balancing, and automated resource management.

Minimizes Data Loss

The final way virtualization lowers the total cost of ownership for businesses is by minimizing data loss.  Every month there are news headlines discussing the latest businesses to be slapped with fines because of data loss.  Depending upon the industry a business operates in, there are a variety of federal and industry regulations related to data protection with a Houston Colocation service.  Violating these regulations can lead to substantial compliance fines.  Along with saving money, data protection enhances customer satisfaction and ensures businesses do not suffer from PR disasters which may affect their long-term profitability.

There have been a variety of studies over the past several years attempting to place a specific number on the actual cost savings a business can realize through virtualization.  One such study noted virtualization can reduce the overall TCO by nearly 45% (per server) over a period of three years.

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