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Overview
This presentation presents thebusiness case for virtualizing ITinfrastructure based on:•Capital and operating cost savingsfrom consolidation•Simplified management andprovisioning•Automated capacity optimizationThe business impact of VirtualDesktops, Disaster Recovery, and LabAutomation are not in the scope of thispresentation.
Intended Audience and Usage
This presentation is designed for useinternally as organizations investigatevirtualization. ITmanagers and directors responsiblefor commissioning new projects shouldunderstand the financial benefits andimpact on IT operations.
 
With the growth of IT as a strategicbusiness function and the shift toindustry standard x86 servers, ITorganizations find themselves facingserver sprawl across theirinfrastructure. Most of these serversare just 10-15% utilized, meaning ITorganizations are investing thousandsin an asset they barely use. IDCestimates that there is a 3-year excesssupply of server capacity in themarket, costing the industry $140billion.Meanwhile, IT organizations need topower, cool, house, and manage allthese servers. With power costsincreasing, IT organizations arespending $0.50 in power and coolingfor every $1 spent on the server itself.This adds up to $29 billion in annualcost industry-wide.Plus, all those servers take space andspace is expensive. At a cost of$40,000 per rack to build a new datacenter, companies should be lookingfor any means possible to avoidexpansions or data center moves.Finally, much of IT time is spent onmaintenance at a cost of 8 times thatof the server itself. IT organizationswould prefer to increase the server-to-admin ratio to reallocate valuabletalent to more strategic initiatives.
 
To deal with these problems,companies in every industry and ofevery size are turning to virtualization.Like ALSTOM, many companies seecost savings of at least 40 percentfrom both lower server AND operatingcosts. For many more customerstories visit:http://www.vmware.com/customers/stories/ However, as analysts like Forresterobserve, the motivation forundertaking a consolidation projectgoes further. Virtualization provides ITsignificantly greater flexibility to meetthe changing needs of their businesspartners.
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