Analysis 1: Renown Health Server Virtualization Physical servers have a limited life expectancy and must eventually For this analysis you are to evaluate a proposal for Renown Medical Center to optimize their data center by virtualizing their existing servers. Use the following facts to conduct a break-even analysis of the virtualization technology Costs be replaced; therefore, by not having to replace as many servers, the cost of the replacements no longer needed becomes a benefit for Renown. Physical servers have a four-year life expectancy and Renown replaces 25% of their servers each year. The hardware cost to replace each physical server is $5,800 Renown will also save on the labor cost to procure and deploy each physical server they do not need to replace which amounts to $1,000 per server. Calculations The break-even analysis will cover a 4-year period from 2017-2020. For each year: It is estimated that virtualization will reduce the number of servers required in Renown's data center by a ratio of 4 to 1. That means for every 4 physical servers running applications, the virtualization ess will en able just 1 physical server to run the same set of applications. Calculate the system costs. Calculate the system benefits. Calculate the net benefits of the system. Renown currently has 80 physical servers in their data center In 2017, virtualization software will be installed on each remaining physical server at a license cost of $8,000 per server per year .Calculate the break-even total for the system. For the total time .The virtualization software provider will also provide data backup period Calculate the net present value (NPV) of the investment using a rate Calculate the internal rate of return (IRR). At the bottom of your and protection services for the whole Renown's data center at a cost of S19,500 per year of 25% . In 2017 there will be a one-time cost of $45,000 to train Renown's IT staff on the virtualization software. spreadsheet add the two questions below and include your answer to them Benefits The reduction in servers from the virtualization process is expected In what year will Renown break even on this project? to save Renown $900 per server in maintenance costs each year. Based on their required rate of return of 25%, should Renown go .The reduction in servers from the virtualization process is expected to forward with this project? save Renown S750 per server in electricity and cooling costs eacih year