virtualization consolidation cost savings calculator

8/3/2019 Virtualization Consolidation Cost Savings Calculator

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Virtualization Consolidation Cost Savings Calculator

Figure 1. Business Case Value of Va

Figure 2. Rule of Thumb Calcula

Instructions:

Info-Tech Research Group has established that savings through lower, one-time and ongoing server acbusiness case for server virtualization (see Figure 1). Past studies have found that these costs can beInfo-Tech has also suggested a rule of thumb calculation of a 3:1 consolidation ratio for a break-even pwith standalone hardware versus a virtual machine partition of a physical server (see Figure 2). Howeveon factors such as OS and virtualization licensing costs. Of particular impact will be the consolidation rabe hosted per physical machine.

Use this calculator to get a broad sense of theconsolidation savings of a virtual server deployment overprovisioning servers with individual instances of serverhardware. Alternatively, utilize the tool to compare total

costs for using one virtualizaiton solution over another.The numbers currently in the spreadsheet are based ona basic example scenario a modest consolidationproject for 16 physical servers that need to be replaced.This involves purchasing four servers and VMwaresvSphere Essentials Plus Kit for High Availability andBusiness Continuity, as well as Windows Server 2008R2 Data Center Edition for licensing virtual machineinstances per processor.

The basic equation for this calculation is hardware costplus OS and virtualization licensing costs divided by thenumber of virtual instances. All of these costs arevariable. Enter your own cost estimates based onsituation. For example, the project might be usingMicrosoft Hyper-V for virtualization or it could be using adifferent VMware option such as the free ESXihypervisor. In general, virtualization licensing fees arefor management, so in the case of Hyper-V include theper server cost of Virtual Machine Manager 2008.

1. In the data entry spreadsheet (Tab 2) enter yourcost estimates for a single server. In our example we

have used a two processor server with 256 GB of RAM.Anything less than a dual processor server is unlikelytoday.

2. Enter a server OS license cost. If a range of OStypes and licenses are being deployed such asvarious flavors of Windows and Linux employ anaverage of total OS costs divided by number of systemsrequired.

3. For Table 2, enter the hardware cost of the virtualization platform (physical server) as well as

2. Reduction in hardw are-relate

costs

1. Reduction in one-time and on-acquisition cost

3. DR/BC enabled by removifor homogeneous hard

4. Efficiency benefitfrom increased

manageability

Business Case Val

0

$3000- 6000

$6000

-

$9000

-

AcquiringNew Servers

Virtua

Cost of newServer

$3-6K

Cost of

HosHardw

$6-12

Cosof Vi

Softw

$3-6

Cost of newServer

$3-6K

Cost of newServer$3-6K


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5. Enter the number of physical servers supporting the virtual server instances.

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v r ua za on. e use n ows erver n erpr se on, w c a ows our server ns ancesvirtualization should include the management layer (if there is one), not just the hypervisor which is esslicensing is on a per processor basis (e.g. Windows Server 2008 R2 DataCenter Edition is licensed per

4. Enter the number of VMs that will be hosted per physical machines (enter zero for non-virtualbound to be an uneven distribution of VMs based on different roles and application loads. Take the avephysical servers.

6. On Tab 3, the results page, there will be figures for total costs and total savings for the virtualeach server is physical. There is also a comparison of the cost per VM with the cost of a physical serv


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rious Virtualization Benefits

tion for 3:1 Consolidation

quisition costs is the strongest argument in aitigated by 40 to 75% through consolidation.int between the cost of provisioning a serverr, consolidation savings will vary dependingtio: the number of virtual machines (VMs) to

he licensing costs for OS and

d maintenance

going hardware

ng needare

e

40% - 75%Acquisition Cost

25% - 50%Monthly

rs Virtualizing

w

Cost of Virt

HostHardware

$6-12K

Costof Virt

Software

$3-6K

w

w


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of subscribers to Info-Tech Research

onal or personal advice, and are not

le or in part as a basis and guide for

-Tech Information in the Header and

machines). Over multiple machines there isage of total VMs divided by number of

environment over an environment whereer.


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Cost Savings per Virtual Machine

Scenario 1Table 1:Baseline (Non-virtualized) Server Costs

Two Processor Server 256 GB of RAM $5,000

Server OS $726 (Windows 2008 R2 Standa

Virtualization Licensing $0

Total $5,726

Expected Consolidation Ratio 0 VMs per Physical Machi

Total Number of Physical Servers 18

Total Machine Instances 18

Scenario 2Table 2:Virtualized Server Costs

Two Processor Server 256 GB of RAM $6,000

Server OS $14,430 (Windows 2008 R2 Data C

Virtualization Licensing $3,495

Subtotal $23,925

Expected Consolidation Ratio 6 VMs per Physical Machi

Total Number of Physical Servers 3

Total Machine Instances 18

Notes:

The expected consolidation ratio can be either the expected number of actual VMs or theVMs possible by capacity. If you use the expected number of servers that are being virtualiwill be a cost per actual VM. If you use the estimated total number of VMs that can comforhardware, you will get a cost per VM plus a number of unused VMs. For example, you coulrunning and capacity for 30 on the three machines. So by entering 10 you get a cost per VVMs. That means there is ca acit to add 15 more VMs at no additional cost.


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rd)

ne

enter)

ne

stimated total number ofzed right now, the resultably be run on thehave 15 actual VMs

M including 15 unused


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Cost Savings Per Virtual Machine

Cost of Baseline Server $5,726

Cost of Virtualized Server $3,988

Total Costs:

Baseline Server Costs $103,068

Virtualized Server Costs $71,775

Cost Differential/Savings $31,293

Notes

Changing the values in the data entry page willautomatically change the results on this page.For example, a higher consolidation ratio willlower the cost per VM and increase the totalcost of unvirtualized infrastructure. Use thisvariability to model the costs and savings ofdifferent hardware and software choices.

Cost of Baseline Server Co

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$5,726


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t of Virtualized Server

$3,988

virtualization consolidation cost savings calculator

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