Virtualization is a process or technology that helps to consolidate IT resources and use them to cater to different business needs. Virtualization also centralizes data and application assets in order to secure crucial information in organizations. It helps to reduce IT management costs in a number of ways and also offers many technical benefits. Many business organizations opt for virtualization to automate most of their business processes to realize significant cost savings in IT management.
- Server consolidation and application availability:Server consolidation offers cost savings in terms of reduced number of server hardware and infrastructure resources. Further separating OS and applications from server will protect each VM from viruses and threats. A virus attack in one VM will not affect other VMs. Consolidating servers will help Administrators to build replication sites for back up and to have a disaster recovery plan without incurring costs. Increased application availability will ensure business continuity for organizations because any planned downtime or outages will not severely affect their VM, therefore service disruptions are avoided.
- Repurpose old or redundant hardware:Cost savings result in the form of retiring servers. From server consolidation, the excess hardware that are underutilized can be reallocated for use in other application areas that did not materialize earlier due to budget limitations. Redundant hardware can also be used to enhance existing capacity for hosting data intensive applications.
- Audit software licenses:IT departments keep current inventory of all software assets. Audits help to identify software that is no longer used. Companies may be paying licensing fees for applications they no longer need. Eliminating redundancy within software can help the company to consolidate software applications and reduce cost in support and maintenance.
- Automating labour intensive processes:The objective of IT is to automate processes whenever and wherever possible. For example, automating customer service solutions can substantially reduce help desk calls. Many mundane tasks like periodic product sales reports, inventory reports, payroll processing, etc can be automated to reduce human error. In this way companies can also reduce their IT personnel which is another cost saving opportunity.
- Outsourcing:Outsourcing is another cost savings option for many companies. IT solution providers can design, develop, implement and maintain technology solutions for companies at a less price than to develop and manage the application in house. Through virtualization IT solution providers host the application on their premises or support and maintain solutions at the company’s location. The company can save considerable cost in hardware and maintenance.
- Align IT with Business Processes:When the IT department have better understanding of business goals, they can plan the amount of resources required in advance to coincide with organizational goals. In this way IT is in a better position to predict future demands on IT resources. IT department can plan for number of VMs required to run business processes and opt for a cloud model to grow with business.
- Centralized IT Management:Virtualization centralizes everything, from OS to data to applications and storage. Centralized IT management offers substantial cost savings by simplifying and automating labour and resource intensive IT operations across disparate hardware. Centralization also helps to secure data and applications, easily apply patches and updates thus reducing human error.
There are more benefits in addition to the above. Virtualization helps companies to achieve operational efficiency at low cost as compared to maintaining an on premise infrastructure. It helps companies to optimize their IT resources both from the technical and operational perceptive without incurring more hardware cost. Virtualization offerings and options are available from many vendors and datacenter service providers to suit business operational needs. IT Managers must consider all technology options and streamline IT processes by thoroughly evaluating cost cutting possibilities without compromising on business growth and future potential.
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