Can server virtualization really save SMB costs?

Generally, server virtualization is considered to reduce the number of servers, while reducing power, cooling, and management and maintenance costs. Therefore, virtualization is generally considered a good way to reduce enterprise costs. However, whether this is the case or not requires us to analyze it carefully.

Server Virtualization Basic Configuration Costs

We need to calculate the actual cost of actual virtualization, starting with configuration. However, unless it's a large enterprise, the cost of deploying server virtualization will be much higher than the cost you can save. According to virtualization consultant Matt Prigo, about 50% of SMBs spend less on deploying virtualization than simply replacing existing physical servers.

Someone has done this calculation, if you buy 20 new servers to expand the data center or replace the original server in the traditional data center for $5,000 each, it will cost $100,000. However, the cost of deploying server virtualization is roughly three powerful server hosts with AMD or Intel processors, each costing about $16,000, a $40,000 storage area network, and staff. Training, management software, virtualization licenses and consulting fees, these costs add up to roughly 100,000 yuan. This does not include the cost of the operating system and applications, because the cost of the two is the same in both ways.

Here, the vast majority of virtualization costs come from the purchase of Intel or AMD servers and shared storage systems and the cost of redundant network connectivity upgrades. Each server host uses only a few thousand dollars for software licenses for virtualization vendors such as Microsoft, Citrix, and EMC VMware, but product maintenance costs must also be considered.

As you can see, if you want to build a data center with 20 servers, the cost of adding new physical servers or deploying virtualization is roughly equal, but given the many advantages of server virtualization, Especially for the continuous growth of business needs, then deploying virtualization will be a wise choice. If you have more than 20 servers configured, it is easier to deploy virtualization. According to the analysis, server virtualization is an excellent choice for enterprises with more than 50 servers. In this application environment, achieving return on investment within 8 to 18 months is a breeze.

However, if the number of servers with less than 20 applications is virtualized, it will be worth the loss. The price and capacity of the storage area network is a great burden for most small businesses. In the article "Instance Study of Virtualization Cases", Preg elaborates on the technology and skills of server virtualization from product pricing to required technology. Everything in detail. If the number of data center servers is less than 20, then other factors be considered in addition to cost before deciding whether to virtualize.

Server Virtualization Costs Needed in Real-World Environments

The above calculations are based on the assumption that data centers will be built from scratch, but few companies are starting from scratch. So how much does it cost to deploy virtualization to an existing data center, and what about the return on investment?

If the data center has 20 servers and the server has an update period of 2-3 years, then 8 servers each year need to be purchased to replace the existing physical server, which costs $40,000. If you deploy virtualization to all servers instead of spending $100,000 to update the server, it takes two and a half years to reclaim the initial virtualization investment, which is the same as the server update cycle. But enterprise users certainly don't want to see virtualization's return on investment equal to the hardware's update cycle.

If you don't need to buy a new storage area network, you can recoup your initial investment in more than a year, because the biggest expense of virtualization is to deploy the shared storage system needed for virtualization. If you do not have a shared storage system, you must set up an iSCSI SAN system, a Fibre Channel storage area network or a network file system. This requires updating the server host every two to three years, but other storage area network hardware devices can be used for a longer period of time, so the annual update cost of the virtualized environment will be higher than the physical environment update cost over time. To be cheap, the specific cost that can be saved depends on the specific circumstances of each environment, but as long as your storage area network renewal period exceeds 5 years (may be shorter), then the decision to deploy virtualization is safe. Worried.

Costs that are hard to predict

Regardless of whether the underlying data on the return on virtualization investment is positive, please note that the actual cost of virtualization will vary depending on the way you choose. Variety.

The cost forecasting process for virtualization also includes the administrative costs of software and hardware. Because virtualization changes the management model, users may need different lifecycle management tools. According to Wolfton of Burton Consulting, many companies upgrade their operating systems to Windows Server 2003 or Windows Server 2008 data center versions when deploying virtualization, which should also be included in the cost of server virtualization.

In addition, regardless of the size of the enterprise virtualization environment configuration, users may need to hire a consultant to review the virtualization architecture. Then there is the cost of the actual migration of the physical server, and the cost of consulting and migration is also very different.

Fortunately, a 20-server virtualized environment may not require specialized virtualization technicians to accomplish this task, knowing that virtualization professionals need at least $80,000 in virtual After the construction of the environment is completed and put into operation, there is even additional system management costs. Virtualization vendors also know that small and medium-sized businesses usually have only one administrator to do all the work in the data center, so they need easy-to-learn tools to assist. Wolff believes that "an administrator can speed up the deployment of virtualization, and small businesses often fully exploit the skills of insiders."

The larger the virtualized environment configuration, the more professional skills are required. Users certainly want to configure fewer server administrators to save money, but this is not realistic. After all, you still have a storage area network that needs to be managed.

Preg warns that another cost that is difficult to predict is the cost of virtualization training. For example, an administrator must know how to reboot a virtual machine without restarting the entire host. "In some cases, users don't have a specific time to learn how to use the system, which also explains from another level that they insist on using physical servers with various limitations."

Most, but not all, of the costs can be factored into the return on investment of VMware and Microsoft's server virtualization. These calculations allow you to have a clearer understanding of potential investments. In addition, their forecasts are often tied to the actual return on investment, Wolff stressed.

Virtualization's elusive return on investment

If your investment virtualization is just about ROI, you may be disappointed, especially if you are a smaller one. The words of the company. According to the consultant's calculations, many small companies deploying virtualization will spend 10% to 15% more on actual deployment.

But Prigo also said that "this additional cost is worthwhile due to the enhanced ability to recover from hardware failures. If you don't pay attention to the benefits of continuous business growth, you will miss the future. Opportunity. After all, the biggest advantage of virtualization is not simply the reduction in the number of server configurations, but the simplicity and flexibility of the entire data center business continuity."