Virtualization For Dummies®

Chapter 6. Performing a Server Virtualization Cost‐Benefit Analysis

In This Chapter

• Choosing your virtualization solution

• Calculating your current cost structure

• Understanding hard and soft costs

• Determining your virtualization solution's financial benefits

• Documenting the financial benefits

In many organizations, deciding whether to go forward with a project is tied up with a project's financial benefits. Certainly a primary reason virtualization is so hot these days is that it promises significant payback. In any case, having a documented financial analysis is sure to help you communicate the benefits of the project as well as “sell” it to decision makers.

This chapter outlines six steps to creating a financial analysis of your virtualization project and even includes examples of the spreadsheets that you can use to document your project. Armed with these items, gaining commitment for your project should be much easier.

Getting Your Cost‐Benefit Ducks in a Row

I won't keep you in suspense any longer. Here are my five steps to performing a server virtualization cost‐benefit analysis in all their succinct glory:

1. Define your proposed virtualization solution.

2. Establish your current cost structure.

3. Identify your virtualization project costs.

4. Define the benefits of your proposed virtualization solution.

5. Create your virtualization project overview spreadsheet.

The upcoming sections examine each of these steps in greater detail.

Defining a solution

Clearly, your first task is to look at your current ...