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Server Virtualization: a Method to Maximize Return on Investment

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Server Virtualization: A Method to Maximize Return on Investment Definition of Server Virtualization Server virtualization is an environment in which there is one physical server and there is software running, called a hypervisor, which allows several independent instances of operating systems (i.e. virtual machines) to run simultaneously. Ou (2006) states the server virtualization is the best solution for “applications that are meant for small- to medium-scale usage.” If implemented properly, organizations can use server virtualization to maximize their return on investment (ROI) in server hardware. Energy costs are rising and replacing “real estate as the primary data center expense” (Overby, 2007). Therefore, utilizing server…show more content…
Perot Systems is a leading provider of outsourcing and technology services. (“Perot Systems Corporation,” 2007) Specifically, Perot Systems offers consulting, business process, applications, and infrastructure solutions to customers in the healthcare, government, and commercial industries. Their mission is to help customers achieve measurable results which define success based on the customers’ terms. (“Perot Systems,” 2007) Current Business Issues Perot Systems’ Infrastructure Solutions group manages more than 30 data centers, (“Perot Systems,” 2007), and those data centers are quickly running out of floor space. To address the issue, Perot Systems decided to build a new data center and is currently nearing the completion of construction. There are several costs associated with building a new data center, including but not limited to construction, installation of fiber optic lines, power, fire suppression equipment, cooling units, and all of the network equipment to be housed. The average data center for a large company like Perot Systems can easily cost about $15 million to build (“AmericanData Technology, Inc.” 2007). There are also annual recurring costs to maintain the data centers such as utilities, bandwidth, maintenance, insurance, taxes, and staffing. As an example of the costs associated with building and maintaining data centers, Baltimore Technology Park (2007), a company which provides data center services, conducted a case study on a
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