Question
You are the CTO for a small but rapidly growing manufacturing company. You have approximately 1,500 servers in your data center. The average server costs
You are the CTO for a small but rapidly growing manufacturing company. You have approximately 1,500 servers in your data center. The average server costs $9,000 to purchase (including system software). You also spend approximately $2,000 per year per server for hardware maintenance, software maintenance, technical support, power, and cooling. You believe that there are considerable opportunities for savings by utilizing virtualization to consolidate server workloads. You believe that 80% of your servers could run as virtual machines under Microsoft Hyper-V and that, on average, you could consolidate 10 physical servers onto a single virtual machine server. These would be higher-end servers costing approximately $16,000 each (including system software). In addition, they will cost more to run, approximately $3,000 (each server) per year for hardware maintenance, software maintenance, technical support, power, and cooling. Prepare a paper for the CIO that describes virtualization and focuses on the benefits of server consolidation. Describe the business case for making investments in this technology. This organization always looks at investments over a 3-year period. Assume that you are at the start of a hardware refresh cycle, and you will be replacing all 1,500 servers in the next year.
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