Virtualisation to help Indian cos save $3.89bn

Written By Unknown on Kamis, 15 Agustus 2013 | 21.43

NEW DELHI: With IT services firms cutting costs to improve bottom-lines, server virtualisation can build a scalable, agile and optimised model and help Indian firms save a whopping $3.89 billion by 2020, a study by research firm IDC said.

The study added $98 billion of spending is expected to be avoided in the Asia Pacific region from 2003-2020 in server spending, power and cooling, etc.

virtualisation allows multiple operating system (OS) to run concurrently on a single computer. It also enables several OSs and applications to run on one physical server thus helps to cut running costs.

"Datacenter has been at the heart of IT transformation as managers have tried to build an agile and optimised model in last 10 years and Indian firms have started laying foundation of their datacenter transformation with virtualisation,"VMware Managing Director (India and SAARC) T Srinivasan told PTI.

The firm looks forward to opportunities that lie ahead as more and more firms begin to benefit from the technologies on their journey to the cloud. The IDC study gives substantial estimates on impact of VMware technologies in India, he added.

According to the IDC study, economic impact of server virtualisation is estimated to reach $3.89 billion in India by 2020.

The study -- Vision 2020: Impact of Server Virtualisation in India Through 2020, sponsored by virtualisation and cloud infrastructure solutions firm VMware -- revealed that $ 98 billion worth of spending is expected to be avoided in APAC region from 2003-2020 in the areas of server spending, power and cooling, floor space and cost of manpower and overheads.

Server virtualisation means that fewer physical servers will be purchased in 2020 as compared to a universe where virtualisation never existed, IDC India Research Director Venu Reddy said.

Since fewer servers will physically appear within datacenters, there will be incremental economic benefits such as less floor space required to host these servers. Whilst this may not be directly related in parity to savings in real estate cost, clearly for some this will be the case, he added.

"We expect the adoption of virtualisation to accelerate over the next few years as organisations increasingly gain confidence and benefit from the technology," Reddy said.

On the break-up of $3.89 billion, IDC study said $2.37 billion in server spending will be avoided due to fewer number of servers, while, $ 666 million in power and cooling costs avoided due to servers avoided. This refers to cost of energy to power and cool a server in the datacenter.

Besides, $827 million in server admin costs avoided, which refers to estimate of the cost avoided in people and overheads needed to manage each physical server and $ 28 million in floor space costs avoided.


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