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The Business Value of Consolidating on Energy Efficient Servers: Customer Findings

Today's competitive business environment is putting IT managers under pressure to accomplish more each year with flat or even reduced budgets. Business managers are looking for more flexible business models, more competitive operations, and faster time to market. All of this means that IT organizations must find operational savings while staying within their budget. They must find new infrastructure solutions that are more efficient and more cost-effective than their current solutions. They must do all of this and, at the same time, accomplish the following: improve service levels, provide faster response times, cover more users, and ensure better-integrated applications that are always available.

Most organizations faced with such budget challenges put off capital expenditures (capex) and seek alternatives, such as extending server life cycles and extending software licenses. This paper demonstrates that such a buy and hold strategy actually adds costs to the datacenter. In fact, refreshing server infrastructure on pace with newer technology (e.g., every two years) can reduce six-year server costs by 33% compared with buying and holding servers for those six years. This occurs not only because today's servers, with the latest semiconductor technology, can do 16 times the work at almost one-half the power requirements but also because of the reduced maintenance overhead and IT labor costs associated with advanced technologies. As the servers age in place, maintenance costs; costs for power and cooling, managing, and monitoring servers; and staff costs can grow steeper, according to a demandside, customer-based study conducted by IDC.

Hewlett Packard Company and Intel
03 Aug 2009
03 Aug 2009
16 Page(s)
White Paper

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