Hi, I'm William from Intel. Today I'm here to share with you how to reduce your TCO in your data center using virtualization technology.

Now, let's take a moment to look at TCO.

TCO is not just about capital expenditure on hardware like server, storage, network, UPS, but also include software and services. A true TCO should also consider operating expenditure like power, cooling, and floor space as well.

The cost of power and cooling is increasing its draw in IT budget. For every 1 dollar spent on hardware, 50 cents is spent on power and cooling needs.

Worst still, these hardware are generally running at 20% utilization. What a waste of resources.

Now, let's look at the power consumption trend of a dual-socket server.

In 2005, a typical Xeon® server would be single-core and consuming 380W of power. I believe many of these servers are still running and functioning well in your data center today.

In 2009, a similar server will be quad-core and consume 320W, that is 60W of saving per server.

However, moving from 2005 to 2009, IT can enjoy up to 10 times the application performance per watt for every server refreshed.

Just imagine you have 4 servers today in your data center. Each machine is running at 20% utilization. You should deploy this application on virtual machine. Using live migration, you can consolidate this virtual machine into one physical server.

The best part about deploying virtualization technology is you can put either of these servers to sleep, saving yourself 960W.

In summary, accelerating server refresh and decommissioning of your old servers will help you improve your application performance per watt in your data center.

Deploying virtualization technology will help you increase the efficiency of your servers while providing flexibility in supporting different workloads. Together, this will help you reduce your true total cost of ownership in your data center.

This is William from Intel.

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