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Selecting Server Processors to Reduce Total Cost
Testing and analysis demonstrated that the newest high-end Intel® Xeon® processors based on Next-Generation Intel® Microarchitecture (Nehalem) can significantly enhance server performance, providing an opportunity for Intel IT to reduce total cost of ownership (TCO) by 42 percent. Intel compared the high-end Intel Xeon processor X5570 (2.93 GHz) with the low-end Intel® Xeon® processor E5504 (2.0 GHz) for two Intel IT computing environments: design and enterprise.
The analysis demonstrated to Intel IT management and purchasing groups that software acquisition and licensing costs - which represent 3x to 6x the cost of the hardware platform - are the largest components of overall TCO for servers deployed at Intel. Because of this, standardizing on high-end processors is a cost effective way for Intel IT to maximize server return on investment (ROI).