Server Virtualization Quickly Pays for Itself

By | Mar 5, 2012

As server virtualization becomes the norm, a new study has come out proving that the practice is worth the price. The move to greener practices being embraced by many IT departments is cutting costs in tough economic times. Now CDW-G is suggesting that those who invest into more green tech will reap financial rewards. It makes sense that the more sustainable an operation, the cheaper it will be to run. The advent of more green IT options allows businesses to make the move to sustainable energy easily.

According to the report, The Efficient Agency, the average investment into server virtualization of $289,512 provided a 140% return on investment. As those returns are reinvested into other green options, such as storage virtualization and document management, companies are seeing a savings of $296,427 or 269%. With proof like this, there is no reason IT departments should hesitate to reinvest their savings from server virtualization. Of course, if the servers are still not in the cloud, moving them to virtual space should be the first course of action. With more security measures being put into action on a regular basis, security is hardly a reason to shy away from the cloud.

The savings found by the report are not explicitly outlined, but InfoWorld has assumed that most savings comes from a reduction in storage and server equipment, less electricity usage for both the equipment and cooling, and less use of paper and ink. Reducing IT expenses is a key way to help the bottom line of the company. While there is an investment cost for moving to virtual options, the savings will pay for the initial setup very quickly.

Not only does the report show a monetary savings, but it also shows greater efficiency. Many respondents identified the outdated processes and technology such as on-site virtualization and data management as the area where their efficiency tanked. Even though outdated technology was a major cause of inefficiency, updating the hardware alone did not provide the same savings in efficiency and income. The fact that upgrades alone did not provide a significant savings shows that moving to virtual options is the best way to produce substantial savings. Of course, keeping hardware that is necessary to keep an IT department running up to date is necessary to continue to reap savings from your virtual options. Run-down and outdated hardware will quickly suck up the savings generated by virtualization.

This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet.

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