Virtualization Saves Microsoft Customers Almost $500K Annually

February 12, 2009

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Microsoft’s virtualization software has saved some business customers around the world an average of $470,000 annually, according to Microsoft Corp.

Microsoft says its business customers have been able to use virtualization to help reduce operations and capital expenses via reduced electrical power consumption and cooling within datacenters. Moreover, reduced hardware acquisition costs, automation of desktop and server management, and centralized application deployment also helped businesses reduce costs.

“The VMware ESX solution would have cost $30,000 for four servers. With Microsoft, we have a service provider agreement that allows for monthly payments with no capital costs — costing us less than $1,000 over the life of the contract,” said David Straede, president and chief operating officer for Santa Barbara Web Hosting.

By running multiple virtual machines on fewer physical servers, Microsoft says Indiana University’s Auxiliary IT Department went from 152 to just 32 servers, which it expects will save $85,000 annually.

Earlier this month, Microsoft launched an add-on to its Dynamics AX business applications that allows midsize companies to collect auditable data for energy consumption and GHG emissions.

The company is alsoworking with the Clinton Foundation to develop tools that will let cities monitor, compare and reduce their greenhouse gas emissions.

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