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Calculate return on investment before moving to server virtualization
This article is part of the April 2009, Vol. 9 issue of Virtual Data Center
There is no question that server virtualization saves money over the long term. So why do you need to calculate return on investment (ROI)? Calculate return on investment by evaluating costs Apart from retiring old server hardware and using that as a business write-off, costs typically break down this way: New server hardware New server hardware upgrades and improvements New hardware service and maintenance over time Virtualization software purchase Virtual server and IT infrastructure management software Other infrastructure software for failover, backup and so on All software maintenance contracts over time Power to operate the hardware over time Labor to retire the old hardware Labor to install the new hardware Labor to manage the virtual servers, including costs of workflow changes Training for IT staff Network upgrades and maintenance Storage upgrades and maintenance Reduced hardware costs, along with lower power and environmental outlays, are just a few of the most notable benefits that have IT administrators and CFOs ...
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Server virtualization is an obvious money-saver, but you still need to calculate return on investment. There are often hidden costs that will affect your virtualization ROI.