Many companies are undergoing server virtualization. This is the concept of putting multiple“virtual” servers onto one physical device. The payoffs can be significant: fewer servers, lesselectricity, less generated heat, less air conditioning, less infrastructure and administrationcosts, increased flexibility, less physical presence (that is, smaller server rooms), fastermaintenance of servers, and more. There are costs, of course, such as licensing thevirtualization software, labour costs in establishing the virtual servers onto a physical device,labour costs in updating tables, and access. But determining the return on investment can be achallenge. Some companies have lost money on server virtualization, while most would saythat they have gained a positive return on investment but have not really quantified theresults.(a) How might a company really determine the return on investment for server virtualization?

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
Question

Many companies are undergoing server virtualization. This is the concept of putting multiple
“virtual” servers onto one physical device. The payoffs can be significant: fewer servers, less
electricity, less generated heat, less air conditioning, less infrastructure and administration
costs, increased flexibility, less physical presence (that is, smaller server rooms), faster
maintenance of servers, and more. There are costs, of course, such as licensing the
virtualization software, labour costs in establishing the virtual servers onto a physical device,
labour costs in updating tables, and access. But determining the return on investment can be a
challenge. Some companies have lost money on server virtualization, while most would say
that they have gained a positive return on investment but have not really quantified the
results.
(a) How might a company really determine the return on investment for server virtualization?

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