New virtualization technologies enable organizations to convert remarkable increases in processor performance into real hard-dollar savings in software. How that is accomplished is not always well understood. When organizations pursue virtualization-enabled cost reduction strategies such as server or data center consolidation, or utility or cloud services, they are actually embarking on a shared service model (SSM) strategy. A lot of attention is given to the technical risk. However, to realize and sustain projected cost savings, the big risk is financial and shows up as a supply-chain problem – or server refresh. SSM strategies require infrastructure available for use, while still avoiding the financial risk of acquiring capacity too early, which is extremely expensive. Virtualization is great for instantly provisioning capabilities, but how does it help ensure capacities are available in a cost-effective manner? This paper describes how to use virtualization to solve server refresh and translate large increases in processor performance into permanent, hard-dollar software savings for your organization.
Why_better_processors_still_big_deal.pdf (292.1 K)