Server Virtualization: What's your ROI

Server Virtualization: What's your ROI

Getting the most from a Server Virtualization Investment

If you are fairly experienced in the world of cloud computing you should (by now) no doubt be aware of why server virtualization is a long term cost effective implementation. For those that aren't aware of what server virtualization is it can be best explained as system of creating multiple copies of virtualized systems, or even entire networks / servers which can be run on one centralized hardware stack / server amalgamation. Server virtualization is what makes it possible to establish VPN's or virtual private networks; these networks in turn, may handle numerous copies of individual portals or the software, OS, and hardware components that individual users interact with.

What makes server virtualization so cost effective in the long run is its ability to simply add additional resources to the existing mainframes in a most painless manner. This flies in the face of current server / hardware augmentation, which often requires a radical (and costly) restructuring procedure. The cloud computing / server virtualization scenario allows you to append additional resources and easily copy and paste logistical and operational parameters onto the new hardware; so downtime is kept to a minimum or entirely absent. In a traditional grid computing / networking scenario, entire hardware stacks have to be purged or cast out once they become obsolete; in other words the old method is extremely inflexible.

So, to put things simply; cloud computing allows you to keep on adding hardware (including normally unusable hardware), assigning various hardware components to new tasks, and creating an extremely powerful system that is capable of using all resources in the most efficient manner possible. Grid networking / computing basically requires you to upgrade on an annual basis, is quite wasteful, uses an extraordinary amount of energy, is inefficient in its distribution of power / resources, and requires a much larger staff to maintain its operational capacity.

All of these factors add up to one conclusion: cloud computing and server virtualization is much cheaper in the long run. As with any significant business investment, before you jump on the bandwagon, there are a few things to consider; or rather, you should (definitely) calculate your long range ROI (return on investment) first.

How to do it

On its face the essence of calculating ROI is simple; you take the total amount you need / would like to invest in your new hardware / setup and compare it with the ongoing / current costs of your setup. Next, you want to figure out how much capital investment is required for a 5 year plan including both proposed setups. These calculated costs should include:

• Virtual server software costs
• Additional application software costs
• Costs associated with the salaries of the maintenance teams needed for both instances.
• All required software costs
• IT infrastructure management software costs
• Server hardware costs (current and proposed)
• Hardware maintenance and upgrading costs

It may be somewhat difficult to calculate the exact potential costs of certain elements, as the prices of software and hardware often fluctuate given the state of the economy. Additionally, any number of breakthroughs is likely to occur in the space of your proposed upgrade period which may make the software / hardware upgrades you thought necessary either rise or drop in overall price. What's the best course of action? Just use average figures. Once you have compiled a spreadsheet for both models it should be easy to see which one offers the clear financial advantage over the other. Also keep in mind that it is entirely feasible to assume that a technological leap in cloud computing can occur at any time, most likely with regards to software development. So it's probably best to slowly upgrade or build your system so that you can both, get the best prices and implement the best components as they are released. It should be noted that software costs for cloud computing environments and applications tend to be more affordable, and require less constant upgrading than the grid model. This means that a current build utilizing certain virtual server software might last quite a number of years longer than what could ever be expected of grid computing.

If your business is realistic and sticks to making calculated decisions concerning its implementation of server virtualization and cloud computing, both the efficiency and costs associated with its computing / IT department certainly won't disappoint. A cloud computing consultancy or expert should be able to identify and calculate specific ROI questions and concerns for you, should you require the additional assistance.