Everyone in IT knows that outsourcing services have claimed for years to provide lower costs, faster service and a better return on investment (ROI) than traditional IT. For example, infrastructure cloud computing services today deliver server capacity faster than ever before, and at “commodity pricing.” Although well-run internal IT depart-ments often provide a better value than outsourced solutions, it can be a challenge for them to demonstrate their value, accurately calculate their costs and provide IT services as expeditiously as possible.
To successfully compete against the cloud providers and prove your value, your internal IT department must focus on cost transparency. This will require you to deliver meaningful cost analysis of every area in the data center from capital expenses (CapEx) to operating expenses (OpEx) to the impact of downtime and outages. While this may sound overwhelming, you’ll find that with this new laser focus on costs, the productivity and efficiency of IT (and the organization as a whole) will skyrocket.
The best way to implement this IT methodology is by leveraging data center virtualization. By using virtualization in the ways detailed in this paper, you’ll be able to deliver transparency into datacenter capital expenses and reduce these costs through server consolidation. Specifically, you’ll learn how to:
- Understand and defend your virtualized workload unit costs
- Track the annualized cost to manage and maintain a VM
- Calculate the incremental cost to deploy a new virtualized application
- Identify waste and optimization points in your virtual environment
- Simplify daily tasks such as provisioning and configuration
- Perfect capacity planning to ensure resource utilization meets business needs