Is Your IT Still a Cost Center? | Opinions | ChannelWorld.in

Is Your IT Still a Cost Center?

Added on Mar 15, 2009 by Ganesh Mahabala
Ganesh Mahabala About the author

Ganesh Mahabala

Ganesh Mahabala is Regional Director, India & SAARC, VMware

The IT department is always referred to as a cost center. But what if that could be changed?

Most of the time IT requests more budgets for every business change that is made. I am sure you would be nodding your head in agreement, if I said you need more servers to handle increased workloads; You are already running at nearly 100 percent of your data center power and space capacity and need more to expand; you need to procure servers to cater to your developers’ demands and you need additional set of hardware for the new project that your organization is planning. In a nutshell, your data center is rigid to change to business requirement and it demands capital for every change desired. This arises from the traditional computing paradigm of one application per server. This is an inefficient way of computing and leads to server sprawl. Virtualization breaks this barrier and represents the best solution for consolidating servers.

What electronic money does to banking, virtualization does to servers. Virtualization converts a physical server into a virtual machine and brings a whole new level of flexibility and efficiency to your data center. It behaves like an operating system for the data center and instead of harnessing power of a single server, it treats all virtualized servers in the data center as a pool of resources.

Let me surprise you. Server utilization before virtualization on average is not more than 3 percent to 5 percent. If that didn’t surprise you this would — when you virtualize, the utilization rate goes north not by a few notches, but to a whooping 50–80 percent. With virtualization, you have an environment that better utilizes your servers and, at the same time, treats the data center resources as a single resource pool. Now nothing stops you from slicing the server resources to the exact requirement of your applications.

This characteristic of virtualization helps in server consolidation. For example, virtualization provides on an average a consolidation ratio of 10:1; that is one physical server after virtualization for every 10 physical servers before virtualization. This high server consolidation has a domino effect on the data center ecosystem — it requires fewer networking components such as switches and cables, power whips, UPS, etc.

Let’s change gears here. Besides the impressive ROI on server consolidation, virtualization gives business continuity a new meaning. Think about implementing resiliency in the physical environment. It requires expensive and complex solutions of high availability such as clustering and exact hardware at different sites for replicating. Even then, with these huge investments, it’s unpredictable as it’s untested. On the other hand, in the virtual world, planned downtime becomes a term of yesterday. When you want to update or patch your virtualized server all you do is VMotion the virtual machines from one virtualized server to another in the cluster. This ensures that no transaction is lost in this process and your physical server is free to be managed, without affecting any application performance or availability. Unplanned downtime apparently becomes a rarity and just in case a server fails, virtual machines restart on the other hosts.So all the applications in the virtual machines are now protected for a fraction of cost without any complexities.

Server provisioning on the other hand is just like creating another new file. Gone are the days when it would take months or weeks to provision a new server. And it doesn’t cost a penny provisioning another server till you have sufficient compute resources.

Eventually virtualization frees a whole bunch of servers in your datacenter, by reducing power, cooling, and the overall cost of running the datacenter. So what are you waiting for? Move to the virtual world, convert your IT setup to a value center from a cost center and contribute to the growth of your organization.

Latest Opinions

  • My smartwatch turned me into a rude bastard (don't let it happen to you)

    Smartwatches are slowly starting to catch on, and they bring with them a new type of digital distraction that could further shrink attention spans and make for ruder masses.

    Al Sacco
  • Of Black Hat and security awareness

    The annual security conference was a chance to go deep. But back in the office, how do you get 100% of the company’s employees to complete the security awareness training?

    By Mathias Thurman
  • Adobe Flash: Kill it now

    It’s time to put Flash out of our misery once and for all. And, thanks to Google, it may finally happen.

    Steven J. Vaughan-Nichols
  • It was 20 years ago today ...

    20 years ago Microsoft released Windows 95

    Kerrie Meyler
  • What Fiorina and Trump can learn from SWOT

    A SWOT (Strengths, Weaknesses, Opportunities and Threats analysis can help your company face its greatest challenges and achieve success. Columnist Rob Enderle demonstrates how to use the SWOT framework by applying it to the two Republican presidential candidates.

    Rob Enderle
Editor's Pick
Customer service: The proof is in the numbers

Customer service: The proof is in the numbers

Customer satisfaction increases when you find your greatest weaknesses and then hone in with a laser focus to address them.

5 principles for great vendor relationships

5 principles for great vendor relationships

Unhappy with your vendor? Challenge them to commit to a strategic relationship. And don’t hesitate to move on if they don’t.

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is the goldmine for us, asserts Jayanth Gojer, COO of Bangalore’s Vitage Systems.

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

Customers need applications to effectively adopt and integrate the SMAC stack and we help them achieve the objective, says Pankaj Ratra, Director-Sales & Marketing, Path Infotech

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

Enough is said about Digital India. But it’s actually happening here and now. Ujjivan Financial Services, a microfinance company, is leveraging a mobile app to make sure that its underprivileged customers get loans real quick in order to grow their businesses.

Latest Videos
Cloud Computing is Not Hype, But Real: Channel Partners

Cloud Computing is Not Hype, But Real: Channel Partners

Cloud Computing has come out of the hype cycle and is now the defining point for enterprise IT, channel partners observe, about the potential for cloud, cloud services and the financing models around cloud computing. 

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is a Multi-Pronged Strategy: Jayanth Gojer, Vitage Systems

Services is the goldmine for us, asserts Jayanth Gojer, COO of Bangalore’s Vitage Systems.

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

We Help Customers Effectively Integrate the SMAC Stack: Pankaj Ratra, Path Infotech

Customers need applications to effectively adopt and integrate the SMAC stack and we help them achieve the objective, says Pankaj Ratra, Director-Sales & Marketing, Path Infotech

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

How Ujjivan is Using a Mobile App to Uplift the Underprivileged

Enough is said about Digital India. But it’s actually happening here and now. Ujjivan Financial Services, a microfinance company, is leveraging a mobile app to make sure that its underprivileged customers get loans real quick in order to grow their businesses.

How Mobility Has Helped Our Business Grow: Channel Partners

How Mobility Has Helped Our Business Grow: Channel Partners

Indian channel partners share how mobility has been instrumental in growing the business of their customers and how that, in turn, has taken partners' business to another level.

ChannelWorld Research
Why Channels Have Changed Their Go-to-Market Strategy in Six Months

Why Channels Have Changed Their Go-to-Market Strategy in Six Months

According to our SOTM Mid-Year Survey, a majority of Indian channels said their top go-to-market strategy was to offer services in a recurring revenue model—not introducing new technologies, like SMAC, which was their top GTM strategy six months ago.

SOTM Mid-Year Survey 2015: Your Roadmap for the Next 6 Months

SOTM Mid-Year Survey 2015: Your Roadmap for the Next 6 Months

According to the survey, the next six months of the year are going to be eventful. Here are the challenges, emerging technologies and trends that will shape the rest of the year for you.

Big Data, Mobility Top Partners’ Wish List: SOTM Mid-Year Survey 2015

Big Data, Mobility Top Partners’ Wish List: SOTM Mid-Year Survey 2015

According to the ChannelWorld's State of the Mart Mid-Year Survey (SOTM) 2015, big data is the way to go for the enterprise channels for the second half of this year, with 34 percent partners planning to invest in it.

Private Cloud Still Remains a ‘Safe Bet’ for Partners: SOTM Survey 2015

Private Cloud Still Remains a ‘Safe Bet’ for Partners: SOTM Survey 2015

According to the STOM 2015 survey, channel partners who are into cloud computing feel that 42 percent of their business will be generated by private cloud.

Partners Pin Hope on Government, Expects IT Spend to Grow: SOTM Mid-Year Survey 2015

Partners Pin Hope on Government, Expects IT Spend to Grow: SOTM Mid-Year Survey 2015

According to the ChannelWorld's State of the Mart Mid-Year survey (SOTM) 2015, 30 percent of the channel partners believe that IT spend in the government sector is likely to increase in next six months.

No More Baby Steps, Partners Ready to ‘Risk’ Gambling with Disruptive Tech: SOTM Survey 2015

No More Baby Steps, Partners Ready to ‘Risk’ Gambling with Disruptive Tech: SOTM Survey 2015

According to ChannelWorld’s State of the Mart Survey (SOTM) 2015, 43 percent of channel partners say their business will have a ‘high risk appetite’ in the second half of this year.

Channels’ 3 Great Expectations from Tech OEMs

Channels’ 3 Great Expectations from Tech OEMs

Introduced as an individual category under ‘Expectations from tech OEMs’ list in SOTM Mid –Year Survey, ‘transparent deal registration’ emerged as the biggest concern for channel companies in India.

SLIDESHOWS
What Quarterly Earnings Reveal About Top IT Companies

What Quarterly Earnings Reveal About Top IT Companies

As top companies reported their quarterly earnings, we find out what strategy worked best for them and the causes of concern in the future.

10 Things You Need to Know About Bi-Modal IT

10 Things You Need to Know About Bi-Modal IT

No longer just another buzzword, bi-modal IT is soon becoming a necessary organizational setup in most companies, especially the ones which find it difficult to go completely digital. Read on to know what CIO.com (http://bit.ly/1Rz1Jti) wants you to know about this system.

Five Hybrid Cloud Benefits Your Customers Can’t Ignore

Five Hybrid Cloud Benefits Your Customers Can’t Ignore

According to IDC, the global cloud market, including private, public and hybrid clouds, will hit $118 billion in 2015 and crest at $200 billion by 2018. If that isn’t enough for you to convince customers to take the hybrid cloud route, here are five more from across the web.

Horrible Bosses: Five Bosses You’d Love to Kill

Horrible Bosses: Five Bosses You’d Love to Kill

It takes all kinds to make the world go round. But it takes only one to bring yours to a standstill: Your boss. Here are five types of bosses you wouldn’t miss—when they’re gone (under mysterious circumstances).

India's Leading VADs
Why Channels Want to Partner With Inflow Technologies

Why Channels Want to Partner With Inflow Technologies

Inflow Technologies’ tie up with 39 vendor companies, an extensive tech portfolio, and a services play, are great value propositions for enterprise channels, says its President and CEO, Byju Pillai.

iValue Creates Real Value for Channels in India

iValue Creates Real Value for Channels in India

Focused on niche vendor alliances around data, network and app management backed by a robust channel ecosystem marked iValue's success in 2014. What clicked for the seven-year-old VAD?

RAH Infotech Shows Channels the Way Ahead

RAH Infotech Shows Channels the Way Ahead

Mutual trust and long lasting bond with vendor companies and channel partners helps VADs to evolve and succeed in today’s aggressively competitive market. Leveraging competent channel partners and forge niche vendor alliances marks RAH Infotech’s success in 2014.

How Satcom Infotech is Adapting to New Security Landscape

How Satcom Infotech is Adapting to New Security Landscape

As a leading value added distributor, Satcom Infotech is emerging as an end-to-end security player, helping both customers and partners grow.

How ComGuard Shields Channel Partners

How ComGuard Shields Channel Partners

As emerging technologies introduce new threats to the enterprise landscape, they are making channel partners anxious. But VADs like ComGuard are putting their worries to rest. Here's how.

Tech Chat
Collaborating To Outcome Based World: Priyadarshi Mohapatra, Avaya

Collaborating To Outcome Based World: Priyadarshi Mohapatra, Avaya

Priyadarshi Mohapatra, Managing Director, India and SAARC, Avaya, on how IT is transitioning from a keep-the-lights-on role to one that enables customers to deliver results.

The Dawn of the Digital Age: Akhilesh Tuteja, KPMG

The Dawn of the Digital Age: Akhilesh Tuteja, KPMG

The development of digital infrastructure will be a key growth driver for technology and solution providers. 

Paradigm Shift from End-Users to User-First : Parag Arora,Citrix

Paradigm Shift from End-Users to User-First : Parag Arora,Citrix

Parag Arora, Area Vice President and India Head, India Sub-continent, Citrix, says new technologies will force organizations to take a user-first approach in 2015.

Mobile and Cloud Are Gamechangers of the Future: Karan Bajwa, Microsoft

Mobile and Cloud Are Gamechangers of the Future: Karan Bajwa, Microsoft

Karan Bajwa, Managing Director, Microsoft India, says, in  2015, organizations will adopt a mobile-first and cloud-first strategy to get ahead of competition.

A Network for the Internet of Everything : Dinesh Malkani,Cisco

A Network for the Internet of Everything : Dinesh Malkani,Cisco

Dinesh Malkani, President, India and SAARC, Cisco, talks about IoT and the significant technology transitions in the networking world.

Moving to the Third Platform: Jaideep Mehta, IDC

Moving to the Third Platform: Jaideep Mehta, IDC

Cloud and mobility are the two technologies that will fuel the rapid adoption of the third platform in India.

Envisaging a Holistic Security Strategy For 2015: Sanjay Rohatgi,Symantec

Envisaging a Holistic Security Strategy For 2015: Sanjay Rohatgi,Symantec

Sanjay Rohatgi, President–Sales, Symantec India, says the company has a set of holistic solutions in place to secure organizations from security threats. 

Beating the Bad Guys: Sivarama Krishnan, PwC

Beating the Bad Guys: Sivarama Krishnan, PwC

Organizations will need to turn inwards to establish robust information security strategies.

Building Capabilities for a Digital Tomorrow: Alok Ohrie,Dell

Building Capabilities for a Digital Tomorrow: Alok Ohrie,Dell

Alok Ohrie, President and Managing Director, Dell India, on the company’s investments to build end-to-end solutions and delivery capabilities for a digital world.

FAST TRACK
Kamtron Systems

Kamtron Systems

Transitioning towards a service-oriented company will boost our growth, believes Kavita Singhal, director, Kamtron Systems.

TIM Infratech

TIM Infratech

Delivering ‘best of breed’ technologies to enterprises is key to success, says Monish Chhabria, MD, TIM Infratech

Mudra Electronics

Mudra Electronics

A vendor-agnostic strategy helped us sustain business, says Bharat Shetty, CMD, Mudra Electronics.

Systematix Technologies

Systematix Technologies

Our USP is a customer-friendly approach backed by services, says Akhilesh Khandelwal, Director, Systematix Technologies.

CorporateServe Solutions

CorporateServe Solutions

Our ability to turnaround complex ERP projects in record time is what gets us customer referral, says Vinay Vohra, Founder & CEO, CorporateServe Solutions.

KernelSphere Technologies

KernelSphere Technologies

We are emerging as an end-to-end systems integrator, says Vinod Kumar, MD, KernelSphere Technologies.

Uniware Systems

Uniware Systems

We constantly validate emerging technologies for first-mover advantage, says Vergis K.R., CEO, Uniware Systems.

Astek Networking & Solutions

Astek Networking & Solutions

An innovative approach helps us stay successful, says Ashish Agarwal, CEO, Astek Networking & Solutions.

CSM Technologies

CSM Technologies

Our approach is backed by innovation and simplicity, says Priyadarshi Nanu Pany, CEO, CSM Technologies.

SOCIAL MEDIA @ CW India
SIGNUP FOR OUR NEWSLETTER

Signup for our newsletter and get regular updates.