Get the Lowest Total Cost of Ownership with VMware

VMware provides a more capable private cloud platform, so how can it be more cost effective than competitors claiming to be less expensive? The answer becomes clear when you compare total cost of ownership (TCO). Vendors claiming to be cheaper consider only virtualization and OS software licenses—a small portion of overall solution costs. When all the capital and operational cost elements of TCO are included, VMware solutions cost LESS.

Use TCO for accurate cost comparisons

A complete server virtualization or private cloud TCO comparison includes the capital costs of solution components, plus the physical infrastructure needed by the solution. Operational expenses are generally several times higher than capital expenses on an annual basis for most IT organizations, so it is essential to consider the cost of running and maintaining your private cloud platform in any comparison. Competitors’ cost comparisons generally leave out several elements of a complete TCO assessment, shown below.

The VMware capital expense advantage

VMware vSphere reduces capital expenses with its superior virtual-machine density—how many virtual machines can run per host—which reduces the number of servers and software licenses that must be acquired. vSphere provides a density advantage over the competition through more advanced resource management. vSphere uses memory better by employing sophisticated multilayered memory management that includes compression, ballooning, transparent page sharing and hypervisor-level swapping to fast solid-state storage. vSphere also excels at cluster-level virtual machine load balancing to let you get more out of your hardware. Customers using both vSphere and Microsoft Hyper-V regularly report that they are able to operate with higher virtual machine densities on vSphere.

Another factor increasing Microsoft capital costs is the need for various third-party software products to fill functionality gaps that exist between vSphere with Operations Management and a Hyper-V with System Center solution. Products that add features such as better monitoring, network virtualization, backup and disaster recovery are required to make up for Microsoft shortcomings.

The VMware operational expense advantage

Operational cost studies show that virtualizing with VMware solutions costs 80-90% less than with Microsoft.* VMware optimizes hardware utilization, provides superior management and policy-based automation and enables a highly available and resilient infrastructure that minimizes downtime costs. By freeing IT staff to innovate for the business and drive growth—while also providing the most capable platform for cloud initiatives—VMware can deliver lower costs and greater business value than competitors.

These studies show that administrators can get their work done faster with VMware server virtualization and private cloud solutions than with solutions built on Microsoft Windows Server 2012 Hyper-V and System Center 2012. Significant VMware operational expense savings come from:

  • Faster platform installation and configuration
  • Faster deployment of new private cloud tenants
  • Easier creation of self-service cloud portals
  • Less effort for chargeback reporting
  • More efficient management and monitoring
  • Faster response to network security attacks
  • Much less patching and updating effort
  • Less time spent managing storage
  • Faster isolation of “noisy neighbor” VMs
  • Less effort testing disaster recovery plans

See for yourself with the VMware TCO Comparison Calculator

VMware provides a TCO Comparison Calculator for small and large enterprises to evaluate the true costs of server virtualization and private cloud solutions. The calculator lets you compare vSphere with Operations Management and vCloud Suite editions with Microsoft alternatives based on Hyper-V and System Center. You can also compare the storage cost savings provided by VMware Virtual SAN. Here’s an example from the calculator comparing the costs of a 1,000-VM virtualized infrastructure built on vSphere with Operations Management Enterprise Plus and Virtual SAN to Microsoft, showing a 35% lower TCO for VMware.

Standardize on VMware for the lowest costs

For enterprises considering running more than one hypervisor, studies warn that managing a mixed environment increases cost and complexity by 40%. Switching virtualization platforms can also be an expensive undertaking because of the hidden costs associated with designing a parallel software infrastructure, setting up duplicate hardware infrastructure and testing each virtual machine as it is migrated. Moreover, many management tasks automatically performed by vSphere must be handled manually in competing systems, increasing a system administrator’s workload. VMware vSphere can handle any workload – virtualized servers or desktops and private clouds – so standardize on vSphere to keep costs low.

* Additional studies available upon request