Full Data Center Virtualization: The Key to Significant CAPEX Savings

A summary of findings from Taneja Group Technology Analysts

A decade ago, compute virtualization turned compute
and server platforms into software objects. Now that same
approach is coming to every layer of the data center.

The software-defined data center (SDDC) changes everything.

An SDDC is an open-architecture platform for
building, operating, and managing private, public,
and hybrid clouds to deliver unprecedented levels
of agility, efficiency, control, and choice.

2,500 VMs. Three data centers. Three compelling results.

Typical VMware vSphere
virtualization environment,
on mostly traditional, feature-
rich hardware components
makes this a hardware-
defined data center.

Virtualization & Automation
CapEx: $1,895,170
Storage CapEx: $1,830,000
Network CapEx: $4,325,973
Compute CapEx: $2,586,017
TOTAL: $10,637,160
Cost per VM: $4,255

This scenario was created
with VMware Virtual SAN and
NSX to create a purely SDDC
environment, in combination
with Cisco hardware and
VMware vSphere.

Virtualization & Automation
CapEx: $2,912,700
Storage CapEx: $1,297,337
Network CapEx: $1,377,040
Compute CapEx: $1,655,714
TOTAL: $7,242,791
Cost per VM: $2,897
Dollars saved: $3,394,369

This scenario was identical
to the SDDC, except that it
was created with low-cost
white-label hardware.

Virtualization & Automation
CapEx: $2,912,700
Storage CapEx: $1,003,292
Network CapEx: $515,210
Compute CapEx: $1,017,544
TOTAL: $5,448,746
Cost per VM: $2,179
Dollars Saved: $5,188,414

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How does virtualizing your network reduce costs?

The biggest savings from the SDDC are
realized through networking. That’s because
networking hardware profit margins are significantly
higher than corresponding margins — and supplier
competition has been limited in the past.

 
 

The savings speak for themselves

0

CapEx savings from adopting
VMware Virtual SAN and NSX*
*On an environment running VMware vSphere

0

CapEx savings from a SDDC
solution with white-label hardware

How does virtualizing your network reduce costs?

Because this approach uses low-cost white-label hardware,
a current trend favored by many of the large cloud service providers.

But wait - there's more!

Virtualization doesn’t only provide significant cost savings. It also improves
operations across the entire data center, freeing up IT resources and making
the business more able to meet the needs of the future.

See the significant benefits an SDDC provides in other areas:

Efficiency

70%
Infrastructure
CapEx reduction
58%
Reduction in
operational costs

Agility

15X
Improvement in
time to execute
**As measured in the lab

Control

1.2X
Infrastructure
CapEx reduction
⅓RD
less annual time and
effort than traditional
infrastructures

Choice

1.7X
More agility in
deployment and
provisioning of
resources
The storage and networking virtualization technologies that VMware has packaged together, as options to accompany their industry leading compute virtualization platform, allow for an evolutionary journey to a fully Software-Defined Data Center. -The Taneja Group Study

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