Is it a Red Card to Enterprise Server Procurement?

With server virtualization rampaging the enterprise storage models, the server hardware market in the past two years, has been witnessing the most challenging times in its history. The growing need to optimize the storage process and thereby efficiently achieve cost benefits remains the key to harness this potential business opportunity. Future storage model of enterprises is moving consistently towards virtualization and proper balance has to be achieved in order to be a leader in their respective markets. With increasing innovations in server virtualization, advanced security options in place, the dynamics of enterprise server hardware procurement is experiencing a shift which will be analyzed in this whitepaper. Enterprises across industries have been witnessing an increasing need to store and process massive volume of information for their day-to-day business purposes. The increasing storage needs is directly proportional to the number of servers required for storage and this, in turn, complicates the maintenance of large number of servers and also, shoots up the power and cooling costs. On the other hand, with ravishing innovations in server environment upgrading technologies frequently consumes a large bite of enterprisesï¾Ãƒâ€šÃ‚Æ’?? capital expenditure and also induces disposal complexities. Server virtualization, which has been in the market for quite a long time, has been garnering the enterprise attention to address the server related issues. The increasing security features and high quality service level agreements has pulled out the enterprises from the shell of being reluctant to virtualization, owing to the risk of sharing enterprise information to a third party organization. Despite the fact that a 100% virtualized environment is not feasible, the level of server virtualization with in an enterprise shall be premeditated based on the enterprise scenario to eradicate the above mentioned issues and thereby, achieve cost savings. Virtualization, which aids in minimizing the number of physical servers in an enterprise and optimizing the server utilization, has gained prominence in the last few years. Several organizations, especially, large enterprises have embraced virtualization for their storage needs. Consistent growth with mergers and acquisitions happening with large enterprises has led to the increase in demand for servers to store the large volume of information. However, this has led to under-utilization of servers and redundancies. To address this, enterprises need to optimize the server utilization for which virtualization remains the most beneficial solution.