Let's assume a company is considering upgrading its server infrastructure.
They need to
choose between traditional dedicated servers and virtualized servers. We’ll calculate costs
and resource utilization based on the following assumptions:
- Traditional Server Architecture: 5 physical servers.
- Virtualized Server Architecture: Using VMware or Hyper-V to host multiple virtual
machines (VMs) on fewer physical servers.
1. Traditional Server Architecture
Assumptions:
- Each server has 8 GB of RAM and 4 CPUs.
- Servers run at 80% utilization.
- Servers cost $5,000 each (for hardware and software).
- Power consumption per server: 300W.
- Electricity cost: $0.12 per kWh.
Calculation:
Total Number of Servers = 5
Server Cost = $5,000 per server
Total Server Cost = 5 * $5,000 = $25,000
Power Consumption per Server = 300W
Total Power Consumption = 5 * 300W = 1500W (or 1.5kW)
Annual Power Consumption (in kWh) = 1.5kW * 24 hours/day * 365 days/year
= 13,140 kWh/year
Annual Electricity Cost = 13,140 kWh * $0.12/kWh = $1,576.80
Total Annual Cost for Traditional Servers = $25,000 (initial) + $1,576.80 (electricity) =
$26,576.80/year
2. Virtualized Server Architecture
Assumptions:
- Server Consolidation Ratio: Each physical server can host 4 virtual machines (VMs) using
virtualization technology.
- The company will use only 3 physical servers to host the same number of workloads.
- The total number of VMs required is 20 (same as 5 servers * 4 VMs per server).
- Servers cost $6,000 each due to more powerful hardware (e.g., better processors and higher
RAM).
- Power consumption per server: 350W (slightly higher due to the increased specs).
Calculation:
Total Number of Servers = 3
Server Cost = $6,000 per server
Total Server Cost = 3 * $6,000 = $18,000
Power Consumption per Server = 350W
Total Power Consumption = 3 * 350W = 1.05kW
Annual Power Consumption (in kWh) = 1.05kW * 24 hours/day * 365 days/year = 9,157.5
kWh/year
Annual Electricity Cost = 9,157.5 kWh * $0.12/kWh = $1,098.90
Total Annual Cost for Virtualized Servers = $18,000 (initial) + $1,098.90 (electricity)
=$19,098.90/year
Summary of Costs
| Architecture | Initial Cost | Annual Electricity Cost | Total Annual Cost |
|--------------------------|--------------|--------------------------|--------------------|
| Traditional Servers | $25,000 | $1,576.80 | $26,576.80 |
| Virtualized Servers | $18,000 | $1,098.90 | $19,098.90 |
Why Virtualization Leads to Better Resource Utilization:
1. Consolidation: Multiple workloads run on a single physical server, reducing idle time and
improving resource use.
2. Flexibility: Virtual machines can be dynamically allocated more resources if required and
can be moved to another physical server when necessary (e.g., in case of high load).
3. Overprovisioning: You can over-provision resources because not all VMs are likely to use
their full allocated resources at the same time.
4. Dynamic Scaling: You can scale VMs up or down based on workload demands, avoiding
overprovisioning of resources in the same way as traditional server setups.
