New Servers = Fewer Servers = Lower Software Costs = Better Bottom Line

With all the hardware manufacturers launching new server lines with Intel’s latest CPUs, they are all forgetting the best reason of all to buy new HW.

Today the cost of hardware is no longer the most significant portion of the costs of running a server platform. For VMware platforms, the hardware typically makes up less than 30% of the cost. Power, VMware licenses, and Microsoft licenses make up the rest.

These costs all scale down with a decreasing footprint. What this means, is that the new Microsoft agreements such as the SCE, have an annual true-down opportunity.

VMware licenses are typically renewed every 3 years, so the lag is longer, but you can still reduce the cost.

The savings associated with replacing a 2 or 3 generation old hardware platform with a new one, is typically a reduction in hardware footprints and software costs of around 35-50%. This is huge. So if all this new hardware is making your wallet itch, go ahead, scratch that itch, buy some hardware, and the savings on power, OS and Virtualizer licenses will more than take care of the business case.

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