Why Virtualization Is Hot: Money

Om Malik, Wednesday, August 22, 2007 at 6:21 AM PT Comments (8)

It has been a summer of virtualization: the blockbuster IPO of VMWare (VMW) followed by the $500 million acquisition of XenSource by Citrix Systems (CTXS).

For now, the key driving force behind virtualization is money - rather need to save money. “The cost of power in the data center is surpassing the amount of the equipment. It didn’t used to be that way,” Sun Microsystems (SUNW) CIO Bob Worrall told Earth2Tech. And virtualization seems to be one way to tacking the issue:

Virtualization right now is at the tip of the iceberg. It is going to be complementary to solving the whole power problem. It’s a dirty secret in the industry that most data centers today run inefficiently. Virtualization makes it easier for CIOs who want to run servers at 80 or 85 percent. It’s the only way to get there.

Full interview with Worrall @ Earth2Tech.

Rating: 62% Thumbs Up Thumbs Down
Print

8 comments so far

August 22nd, 2007
7:41 AM PT
Victor said:

I could not agree with you more. The virtualization will dramatically increase productivity and save costs as I had mentioned. Great points Om.

VK

August 22nd, 2007
8:26 AM PT

Few months ago CNET ran several stories/videos on power consumption of Google and Microsoft’s data centers. These centers almost looked like a giant factory with stacks of blade servers, standby diesel generators, aisles of UPS batteries and so on. These units require more power to run than an average suburban area.

I think Virtualization is the answer to share resources efficiently. Amazon’s Elastic Compute Cloud (EC2) does exactly the same, allows individuals or businesses to share company’s massive hosting infrastructure for a small fee. In fact, Wall Street Journal assert that Amazon’s S3 (storage) coupled with EC2 is a boon to tech startups as it provides inexpensive computing options. Check my blog on this technology for more details:
http://ashishkprasad.blogspot.com/2007/07/amazon-s3-storage-on-go.html

August 22nd, 2007
9:09 AM PT
tonylucas said:

The utility computing model (effectively spearheaded by EC2 & S3) is really going to change the market in the next few years, especially with other companies (including ours) coming into the mix with improved offerings, including fixing some of the issues with Amazon’s first generation system.

In our own tests we have seen up to 90% reduction in power requirements through virtualisation, through a combination of improved power efficiency of larger servers, and more accurately being able to allocate resources against demand, both of which are vital.

We are already talking to a number of people who are interested in using our service who’s business model couldn’t exist without a utility platform, let alone all the others who’s model it will make a lot more financially viable.

August 22nd, 2007
10:13 AM PT
sooth_sayer said:

This is snake oil technology.

Why can Virtualization “Alone” solve this problem ? What’s in that piece of code that can’t be run in a Windows/Linux/or Solaris?

Fact is, this is a solution looking for a problem, when people are looking for “dirty secrets”, it generally means they couldn’t find any useful ones.

This thing started as a project to run MS software on Linux .. now the project has run amuck and the investor have gone crazy again. Doesn’t anyone remember VA-Linux .. and AOL buying TimeWarner ?

August 22nd, 2007
2:32 PM PT

[...] turning heads, forcing CIOs to rethink their current strategies. Bloggers like Om Malik, who posted this article today and Bob Evans of InformationWeek who wrote an interesting piece yesterday discussing [...]

August 23rd, 2007
10:09 PM PT
David Mackey said:

Virtualization is a wonderful technology. I am looking forward to the increasing utilization of virtual desktops. Will be interesting to see how Microsoft’s new software turns out with the release of Server 2008.

December 12th, 2007
1:53 PM PT

[...] Related Posts: Why virtualization is hot: Money. [...]

February 13th, 2008
7:24 AM PT

[...] Stacey Higginbotham, Wednesday, February 13, 2008 at 7:24 AM PT Comments (0) If only it were green. That’s what I found myself thinking after Sun Microsystems paid an undisclosed amount for Innotek, the makers of open source desktop virtualization software VirtualBox Virtual Machine. With an earth-friendly spin Innoteck could have created a trifecta of buzzwords that would have really pumped up its valuation. [...]

Leave a Comment

Get the comments RSS feed, instant notification of new comments

Most Comments

10 Reasons Enterprises Aren’t Ready to Trust the Cloud
Stacey Higginbotham, July 1, 44 comments
Inside Microsoft’s Internet Infrastructure & Its Plans For The Future
Om Malik, June 30, 25 comments
Bandwidth Barons Want More Money for Fewer Bytes
Allan Leinwand, July 3, 22 comments
State of U.S. Broadband: Demand Hits Speed Bumps
Om Malik, July 2, 16 comments
The Real Reason Powerset Sold (Out)
Om Malik, July 2, 15 comments

Highest Rated

Bandwidth Barons Want More Money for Fewer Bytes
Allan Leinwand, July 3, 69%
10 of the Biggest Platform Development Mistakes
Marty Abbott and Michael Fisher, June 30, 66%
Inside Microsoft’s Internet Infrastructure & Its Plans For The Future
Om Malik, June 30, 65%
No More AT&T Callvantage?
Om Malik, July 3, 73%
Meebo’s Jen: How to Find Hard-to-Find Talent
Carleen Hawn, July 5, 75%
Close
E-mail It