This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Use Single-Socket Servers to Reduce Costs in

the Data Center
Published: 5 December 2018 ID: G00373722

Analyst(s): Tony Harvey

IT organizations are continually challenged to provide cost-optimized on-

premises server infrastructure. I&O leaders should use servers with a single
CPU to reduce acquisition costs of both the server hardware and software
licenses.

Key Challenges
■ On-premises server hardware and software license costs remain a significant element of the IT
budget. I&O leaders must look to reduce costs in this area.
■ Server hardware commoditization makes it more difficult to show cost reductions simply by
negotiating greater discounts.
■ Software license and subscription charges usually exceed the hardware expenses by an order
of magnitude, but hardware configurations are not being optimized for software costs, leading
to increased overall costs.

Recommendations
I&O leaders tasked with maintaining and optimizing their existing infrastructure while reducing costs
should:

■ Leverage performance and memory density increases delivered by newer technologies by using
single-socket servers, or dual-socket servers with a single CPU installed.
■ Migrate servers, particularly those installed for three or more years, to ones with a single CPU.
Start with servers that have CPU utilization of 25% or lower.
■ Reduce software licensing costs by using servers with a single CPU for socket/CPU-based
licensed software and minimizing the number of CPU cores for core licensed software.

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Strategic Planning Assumption

By 2021, dedicated x86 single-socket servers will be able to address 80% of the workloads in use
in enterprise data centers, up from 20% in 2018.

Introduction
I&O leaders are now forced to reduce costs and increase server utilization to match the efficiencies
of cloud hosted services. Gartner clients typically report average x86 server CPU utilization of less
1
than 20%, far below the typical goal of 75% or greater.

One of the most common causes of underutilization is that limitations on the memory and input/
output (I/O) capacity of individual CPUs require I&O leaders to overpurchase processing capacity to
ensure that applications have the necessary memory and I/O to run effectively. This increases
hardware costs and has the side effect of significantly increasing software license costs as the extra
CPUs and cores must be licensed.

I&O leaders can now reduce server hardware costs by up to 30% and software licensing costs by
50% or more by:

■ Using new CPUs (see Note 1) designed to provide large memory and I/O capacity from a single
CPU socket.
■ Taking advantage of memory density increases to deliver more memory per CPU socket.

Analysis
Leverage CPU Performance Increases to Migrate to Single-CPU Severs
As each generation of x86 processor is released, it adds additional cores and features over the
previous generation that increase performance considerably. Due to this ongoing performance
increase, a single, current-generation CPU can outperform a dual-CPU server from earlier
generations. Figure 1 shows the relative performance of 16 cores in an earlier-generation two-CPU
configuration compared to current-generation single CPUs. A current-generation single-CPU server
can easily take on the workload of one or more older-generation two-CPU servers.

Page 2 of 9 Gartner, Inc. | G00373722

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Figure 1. Relative Performance of 16 Cores

Processors used for comparison: E5-2650v1 2.0GHz, E5-2650 v2 2.6GHz, AMD 7531P 2.4GHz, Gold 6130 2.1GHz

Source: Gartner (December 2018)

Memory density is also increasing, which allows a single-CPU server with 12 or 16 dual in-line
memory module (DIMM) sockets to support memory densities that could only be previously
supported by servers with two sockets, both populated. In most virtualized solutions, memory
capacity and bandwidth, rather than CPU performance, are the limiting factors, hence the low-CPU
2
utilization common in dual-socket environments.

Gartner, Inc. | G00373722 Page 3 of 9

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Figure 2. Maximum Memory per Socket

Source: Gartner (December 2018)

Option 1: Use a Dual-Socket Server With One CPU Installed

Almost all dual-socket servers have been able to operate with only one socket populated. In fact,
Gartner estimates that nearly 30% of dual-socket servers are shipped with only one socket
populated. Installing a single CPU in a dual-socket server can save the cost of the CPU, which can
represent up to 30% of the cost of the overall server. In addition, populating only one socket in a
dual-socket server provides the advantage of allowing that system to be upgraded at a future date if
more processing, memory or I/O is required.

Option 2: Use a Dedicated Single-Socket Server

Enterprises have typically purchased dual-socket servers due to the historical limitations in terms of
core count, addressable memory and I/O in CPUs designed for use in dedicated single-socket
servers. This has changed with the recent introduction by AMD of its EPYC processors that are
optimized for use in dedicated single-socket servers. As shown in Table 1, single-socket servers can
now provide the memory and I/O capacity to meet the needs of most of the applications commonly
in use.

Page 4 of 9 Gartner, Inc. | G00373722

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Table 1. Single-Socket Versus Dual-Socket CPUs

AMD EPYC (1 Intel Xeon E Series Intel Xeon Processor Intel Xeon Scalable
Socket) (1 Socket Skylake) E5 v2 Series (2 (Skylake) (2 Sockets)
Sockets)

Launch Date 1Q17 2Q18 3Q13 3Q17

Cores 8 to 32 4 to 6 4 to 12 4 to 28

Memory Channels 8 2 4 6
Per CPU

Max Memory 2TB 128GB 768GB 768GB or 1.5TB

PCIe Lanes 128 16 40 48

Cache Size 32MB to 64MB 12MB 10MB to 30MB 8.25MB to 38.5MB

Source: Gartner (December 2018)

A server with only one CPU socket does not incur the extra hardware cost (components, heat sinks,
power supply capacity, fans, etc.) associated with the second socket, further reducing the cost of
the hardware. See Note 2 for examples of dedicated single-socket servers.

Identify Servers With Low CPU Utilization for Migration

Use performance monitoring tools that are commonly available in hypervisors, virtual machines
(VMs) or operating systems, such as Performance Monitor for Windows, to analyze the current CPU
utilization of your compute infrastructure. See “Gartner Market Guide for IT Infrastructure Monitoring
Tools” for comprehensive information on various monitoring tools. Run these tools against the
current inventory, and select workloads running on servers with low CPU utilization as candidates
for migration to a single CPU server. Older servers that are at the end of their normal three- to five-
year life cycle should be prioritized for workload migration.

Reduce Software License Costs With Single-CPU Servers

Operating system, hypervisor and application vendors use many different methods to charge for
software licenses, and licensing terms and conditions vary significantly by vendor. A detailed
discussion is beyond the scope of this research; however, in general, the most common methods
are:

■ Socket-based licenses: Each physically installed CPU is licensed. Therefore, a server with two
CPUs installed must have two licenses. An example would be VMware vSphere and vSAN. In
some cases, a minimum number of socket licenses must be purchased, for example, Red Hat
Enterprise Linux is sold in two-socket subscription increments.

Gartner, Inc. | G00373722 Page 5 of 9

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

■ Core-based licensing: A license must be purchased for each CPU core. In some cases, a
minimum number of cores must be licensed. An example is Windows Server 2016, which is
core-licensed, but a minimum of 16 core licenses must be purchased.
■ Machine-based licensing: Some vendors use a more complex calculation, which considers the
actual system configuration typically including CPU, memory and storage configurations.
■ Enterprise license agreements (ELAs): An ELA is an agreement to license the entire
population of an entity (employees, on-site contractors, off-site contractors) to use software for
a specified period for a specified price. Some vendors also provide fixed-price contracts that
are limited by number the licenses that can be used.

Where no ELA is in place and individual socket-based licenses are being used, migrating to single-
socket servers can bring significant cost savings. An example for a VMware vSAN hyperconverged
solution is shown in Figure 3.

Figure 3. VMware vSAN License List Price

HCI = hyperconverged infrastructure; S&S = service and support

Source: Gartner (December 2018)

Page 6 of 9 Gartner, Inc. | G00373722

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Use Low-Core-Count CPUs to Reduce the Costs of Core-Licensed Software

Where the operating system or application is core-licensed, a single-socket server with a low core
count and a large memory footprint provides an ideal way to increase the usage of expensive
licensed cores. Database applications (such as Oracle Database and Microsoft SQL Server) or core-
licensed virtualization solutions (such as Microsoft Hyper-V) are ideal candidates as an increase in
memory capacity can typically provide better performance than a faster CPU or a CPU with more
cores.

Gartner Recommended Reading

Some documents may not be available as part of your current Gartner subscription.

“Reduce the Cost and Risk of Microsoft’s Windows Server Processor to Core Licensing Change”

“Market Insight: New Processors and Compute Models Disrupt Server Market Dynamics”

“Market Guide for Compute Platforms”

“Market Guide for IT Infrastructure Monitoring Tools”

“Toolkit: Gartner’s Top 100 IT Cost Optimization Ideas”

“10 Ways to Reduce the Cost of Acquiring Servers”

“Toolkit: Five-Step Process to Optimize Software License Contract Terms and Conditions”

Evidence
These strategies were gathered through Gartner client inquiries, primary and secondary research
conducted by Gartner analysts, and findings from other Gartner research, including IT Key Metrics
Data (ITKMD), Gartner Peer Connect and the Gartner Technology Planner.

1 Gartner client interactions and polling studies.

2 Using similarly configured one- and two-processor rack servers from a multinational vendor,
including 128GB of memory and no software, and relative performance estimates from the Gartner
Technology Planner, October 2018.

Note 1 Difference Between Sockets and CPUs

Throughout this research, the term “sockets” is used to refer to the number of processors that can
physically be installed in the server. “CPUs” is used to refer to the actual number of processors
installed.

Gartner, Inc. | G00373722 Page 7 of 9

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

Note 2 Example Single-Socket Servers From Common Server Vendors

Table 2. Single Socket Rack Servers

Vendor Model CPU Type Form Factor

Dell PowerEdge R230 Intel Xeon E3 v6 1U

Dell PowerEdge R330 Intel Xeon E3 v6 2U

Dell PowerEdge R6415 AMD EPYC 1U

Dell PowerEdge R7415 AMD EPYC 2U

Fujitsu PRIMERGY RX1330 Intel Xeon E3 v6 1U

Hewlett Packard Enterprise (HPE) ProLiant DL20 Gen9 Intel Xeon E3 v6 1U

HPE ProLiant DL20 Gen10 Intel Xeon E2100 Series 1U

HPE ProLiant DL325 Gen10 AMD EPYC 1U

HPE ProLiant DL385 Gen10 AMD EPYC 2U

Lenovo System x3250 M6 Intel Xeon E3 v6 1U

Lenovo ThinkSystem SR250 Intel Xeon E Processor 2100 series 1U

U = rack unit

Source: Gartner (December 2018)

Page 8 of 9 Gartner, Inc. | G00373722

This research note is restricted to the personal use of brunomf@itaipu.gov.br.

 This research note is restricted to the personal use of brunomf@itaipu.gov.br.

GARTNER HEADQUARTERS

Corporate Headquarters
56 Top Gallant Road
Stamford, CT 06902-7700
USA
+1 203 964 0096

Regional Headquarters
AUSTRALIA
BRAZIL
JAPAN
UNITED KINGDOM

For a complete list of worldwide locations,

visit http://www.gartner.com/technology/about.jsp

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This
publication may not be reproduced or distributed in any form without Gartner's prior written permission. It consists of the opinions of
Gartner's research organization, which should not be construed as statements of fact. While the information contained in this publication
has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of
such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice
and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner Usage Policy.
Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research
organization without input or influence from any third party. For further information, see "Guiding Principles on Independence and
Objectivity."

Gartner, Inc. | G00373722 Page 9 of 9

This research note is restricted to the personal use of brunomf@itaipu.gov.br.