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Here’s the cost savings:

• The company can expect a saving of US$5.9 million per year.
• A US$14 million net present value (NPV). This is the amount of value added to
the company.
• A 670 percent (or more) return on investment (ROI).

Storage Savings
CompuGlobalMegaWare isn’t just interested in reducing the amount of spindles turning in
its SANs. The company is also interested in deploying some intelligence to the system. This
will include thin provisioning and automated tiered storage.
The company has 1000TB of data on 13,700 146GB drives, each spinning at 10,000 rpm.
The drives cost—over 5 years—US$1.3 million just to power.
As part of its storage consolidation plan, CompuGlobalMegaWare will employ an
automatic tiered system. As such, 13,700 drives will be reduced to 1,050. Of the new drives,
700 will be the same size as before, whereas 350 will be 750GB SATA drives.
This new deployment will cost US$93,950 to power, over 5 years, resulting in more than
US$1.2 million in savings.

Bonus Savings

As we’ve mentioned before, savings manifest themselves in many different ways, some of
which are difficult to quantify, because they will differ based on the company.
You can first realize savings based on what we’ve already stated. Although the price of
a server and the act of consolidation can bring different results—based on what you buy,
who you buy it from, and so forth—the savings are clear. But if you want some icing on your
cake, you can measure some extras that you might not have thought about.
Start by taking some measurements at your organization. Before you virtualize, jot down
what you’re spending on:
• Security technology
• Staffing
• Training
• Application development
• Testing PART V
• Support contracts
• Anything else you can think of that relates to your servers and storage

After you have been virtualized for a quarter or so, go back and revisit those numbers.
You’re likely going to be saving quite a bit of money you hadn’t planned on.
Over the past few chapters, we’ve thrown a lot of concepts and technologies at you. In
the next chapter, we’ll take these pieces and show you how they all fit together as we show
you how you can green your IT department, step by step.