Saving Costs with Virtualization

In a little over four years, virtualization has gone from an idea that was practiced by few to a standard process in many organizations. It’s evident that there are cost savings, and a recent report has confirmed this. The report states that some organizations have enjoyed a return on investment of up to 269% from virtualization. Read on for more information.

What is Virtualization?
Virtualization is the creation of a virtual computing environment, where one hardware system can run multiple virtual environments. Common types of virtualization include servers, storage devices, or networks. The benefits of virtualization include lower costs, improved IT management, and reduced energy consumption.

The Survey
A report published by CDW-G focuses on government organizations in the United Sates. Many SME owners and managers like yourselves are probably asking, “How do study results involving the government help my business?” Well, if you look closer you can see that what the government organizations did can easily be replicated by SMEs, just on a smaller scale.

Results
In recent years, many companies have had to tighten their belts due to economic difficulties. Government agencies are no exception. The results of the survey found that agencies and organizations realized investment returns as high as 134 to 269%. The survey found that if IT managers invest in Server Virtualization, Document Management, Storage Virtualization, and Cloud Computing in that order, the returns on Server Virtualization alone can help pay for, if not totally cover the cost of, the other three processes. CDW-G found that on average, the total cost of implementing all four separately is over USD 1.1million, but when implemented in order, the average cost was around USD 400,000.

While it is unlikely that SMEs will see a return on investments of this magnitude, it is highly likely that they will see increased returns if they follow this method of re-investing returns from Server Virtualization into the other three steps. In times of economic stress, this could be a huge boost to your bottom line.

Helpful Recommendations
From the results, CDW-G offered some useful recommendations that all businesses can use:

  • When budget cuts are needed, first look for ways to increase efficiency without service cuts.
  • Review technologies and processes to identify inefficiencies.
  • Consider savings and efficiency opportunities in all new solutions.
  • Leverage available savings into new projects.

As with any new process, it’s equally important to ensure that you educate the users of the processes and stay on your toes to keep updated.

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