– David Matusow, Center of Excellence – Architect, SunGard Availability Services (www.sunguard.com), says:

Although the industry seems to be headed in a more positive direction, businesses are seeing the cost of the data center as rising at a rate that is not in-line with the increases in processor power. Many companies are seeing the cost of energy operating their data center as now exceeding the cost of the personnel within the center. This has a direct and major effect on the operation and the ability of the IT department to support the company.

Virtualization is being used as a method of consolidating resources to improve efficiency in space, power, and cooling. These are all good outcomes, but the gains are one-time; this is not a path that can be used again and again. Instead, the gains are realized and the company must find new methods the next time to reduce costs by increasing efficiencies.