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4 Reasons Why Companies Virtualize Their Networks

by User Not Found | Jun 10, 2013

What is virtualization?

Virtualization is the creation of versions of computer resources that run on a virtual machine. It is software that acts like it is a separate computer running your tasks and data. Consider it a computer "doppelganger" or computer twin running without the hardware.  Because each virtual machine is completely separate and independent, many of them can run simultaneously on a single computer or server or in the cloud. 

You can run as many of these “virtual computers” as needed for your company such as virtualized desktops, virtualized servers, virtualized storage, virtualized operating systems or virtualized network resources.  All of these virtualized computers can be used as well as any physical computer.   

4  Reasons why companies virtualize their networks: 

1. Many businesses are looking to virtualization as a way of cutting costs.  A recent survey found that 70% (1) of the respondents in mid to large companies are considering virtualizing when it was time for a major hardware refresh to avoid the cost of buying a large quantity of physical machines.

2. In the same survey 52% of companies virtualized when it was time for a major operating system migration, such as, from XP to Windows 7 and Windows 7 to Windows 8.  Also 51% of the surveyed companies virtualized their servers when it was time for a major license renewal, like Oracle or SAP, because  virtualization saves considerable time and money by consolidating servers and reducing license fees.

3. Disaster planning is an important reason companies virtualize. An in-depth study estimated that $26.5 billion(2) is lost due to grid downtime or power outages caused by natural disasters.

4. Hardware eats up to 40 percent of the usual IT budget in companies with fewer than 1,000 employees. (3) Virtualizing can save money by reducing server and application management costs and reducing the personnel time required for IT management. More than half of all resource-constrained businesses said server virtualization was a priority to reduce management issues, the ability to  lower costs and increase efficiency.(3) So  companies virtualize when they are in a 'buy' cycle to refresh their hardware  and want to improve server utilization

Seventy-nine percent of businesses that have already virtualized are seeing 'significant' benefits.(4) Over the next two years they plan to invest 23 percent of their IT budgets in virtualization and convert  32 percent of servers to virtual hosts.(5) 

It is still an extensive, complicated and time consuming process to plan, budget, buy, install, execute and manage a virtualization program.

What if there was a simpler way for a company to receive the obvious benefits?  

The answer may surprise you and will be covered in the next blog post.

“Technology is technology but it is the people who service, manage and support your business that make the difference.”


1: VMWare Sponsored Survey 2012

2 'IT Downtime Costs $26 Billion in Lost Revenue,' by Chandler Harris. InformationWeek. May 24, 2011.

3 'State of SMB IT,' Spiceworks, January 2012.

4 'Demand Insights: The SMB Hardware Infrastructure Market,' Forrester. April 20, 2011

5 'Small Business Virtualization Roadmap,' CDW. August 8, 2011