How Much Can Your Business Save with Virtualization?

If you’re looking for a way to save money on IT expenses, server virtualization may be the answer. This technology can help your small business reduce both the physical and operational costs of IT.

Here’s a look at how:


Fewer Servers = Less Expense

With a “physical-only” server environment, much of the processing power of each machine goes to waste. A typical server may only use about 5-15% of its computing capacity. Virtualization, the process of creating multiple virtual machines on one server, can increase utilization rates to around 70-80%, meaning you can get more done with fewer servers.

In addition to expenses saved from buying and upgrading fewer machines, virtualization helps you spend less on power and cooling expenses. Studies have shown that virtualization can reduce energy costs by up to 80%. That’s good not only for your bottom line, but for the environment as well.

Looked at as a whole, businesses—including smaller firms—were able to lower per-application costs by as much as 20-30%, making it easier for IT management to design solutions that really work for the company.

Investing in Innovation

When surveyed, a full 2/3 of VMware customers say that virtualization has reduced their operating costs by at least 25 percent. This is not an insignificant figure—with the time and money saved on IT expenses, these businesses are able to focus on mission-critical tasks. Employees have more resources to help the business grow.


As with any tech strategy, there are some things that you must be aware of before adoption. One is magnified physical failures—in other words, when one physical server goes down, it may mean that 5 or 6 virtual machines are actually knocked offline. A way to compensate for this downside is to invest in a continuous data protection solution (in other words, real-time backup) that can back up your servers and restore your data quickly when something goes wrong. Another drawback is that you may see virtual machine sprawl if you do not set up a management plan from the beginning.

All in all, though, virtualization is a technology that has enormous potential to do good in nearly any small organization.

Firmology Readers: Let’s hear your thoughts!

How about you? Have you adopted virtualization in your organization? Tell us about your experiences.

About The Author

Matt Smith works for Dell and has a passion for learning and writing about technology. Outside of work he enjoys entrepreneurship, being with his family, and the outdoors.