Virtual Machines Are Not Free
by VKernel

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Published on: 11/01/2008
Type of content: White Paper
Format: Adobe Acrobat (.pdf)
Length: 3
Price: FREE

Overview
While cost recovery is usually the major driver for implementing a chargeback process, it is not the only issue that can be solved. Having the cost data as discussed above enables IT to gain cost visibility and also properly allocate the resources required to service each business unit based on the resources that are actually being used. This is important in further planning the virtual infrastructure, as IT can make more informed decisions on additional purchases and upgrades to help optimize the infrastructure. IT also now has the fiscal information to present to corporate finance to justify these decisions.

The ultimate goal is to lower and control costs with intelligent planning to drive a quicker time to ROI. Success of a virtualization project will be based on that time to ROI. With a chargeback process in place, departments will learn that there is a cost associated with adding virtual machines. This should also help address the virtual machine sprawl “epidemic” that is spreading like wildfire. While virtual machines aren’t free, inter-organizational departments will see significant cost and time savings benefits from virtualized environments over deploying more physical servers.

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