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VIRTUALIZATION is Helping Businesses - TGH Technology and Business Portal/Blog

What is Virtualization ? How does Virtualization helps Businesses ?

Virtualization: “In computing, virtualization means to create a virtual version of a device or resource, such as a serverstorage devicenetwork or even an operating system where the framework divides the resource into one or more execution environments.”

Source: Webopedia –

With increasing demands for information technology (IT), infrastructure and devices, these will lead to higher operating costs for the IT gadgets manufacturer and IT providers. How will Virtualization helps Businesses to save their spending costs?


VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, launched the Virtualization 2020 campaign in an effort to help businesses move from the client server era to mobile cloud era of computing. As a first step,VMware sponsored the IDC Server Economies Index to demonstrate the potential of virtualization in Asia Pacific. The IDC Server Economies Index revealed that S$4.38 billion worth of spending is expected to be avoided in Singapore from 2003-2020 due to the impact of server virtualization.

The IDC white paper, titled Vision 2020: Virtualization’s Potential US$98 Billion Impact (August 2013, IDC#AP77008W, provides an analysis on virtualization over the past 10 years and looks forward through 2020.  A hypothetical model was built to measure the impact of virtualization in the x86 server world by estimating the additional x86 server spending that would have taken place if no virtualization solution was offered.

In Singapore, the potential economic impact using the IDC model is S$4.38 billion, comprising costs avoided in four key areas:

  • S$2.38 billion in server spending costs avoided due to servers avoided – more than half of the costs avoided in total. Server spending refers to the customer revenue generated from the sale of physical servers. This amount was the equivalent to 4.5 years of GST vouchers that could be handed out to the entire population of Singapore.
  • S$624 million in power and cooling costs avoided due to servers avoided. This refers to cost of energy to power and cool a physical server in the datacenter.
  • S$60 million in floor space costs avoided due to real estate avoided. This refers to the land or construction cost associated in housing a physical server.
  • S$1.32 billion in server admin costs avoided. This refers to server admin costs avoided and includes IDC’s estimate of the cost of people and overheads needed to manage each physical server.

Singapore is an IT Hub and moving towards an Intelligent Nation, this will encourage more businesses to embrace Virtualization, it will help them to save their costs. Estimated S$1.15 billion in costs avoided to date; expected to increase an additional S$3.23 billion by 2020. The benefits for the companies embracing Virtualization include better business agility and flexibility, a reduction in operational expenses and greater environmental sustainability.

Savings at a Glance 

Server Spending Savings

Total savings from 2003 – 2020:

  • ·         USD$1,980,000,000.00
  • ·         SGD$2,376,000,000.00

(Conversion rate: 1USD = 1.2SGD)

Singapore population: 5,312,400

Total number of $100 GST vouchers: 23,760,000

Number of years that $100 GST vouchers can be handed out to all Singaporeans: 23,760,000 / 5,312,400 = 4.5

Server Spending — HDB

Power and Cooling Savings

Total savings from 2003 – 2020:

  • USD $520,000,000.00
  • SGD $624,000,000.00

(Conversion rate: 1USD = 1.2SGD)

Singaporean Electricity Tariff: cost per kWh: $0.2595

Amount of kWh that can be paid with the P&C savings: $624,000,000.00 / $0.2595 = 2,404,624,277kWh

Average monthly power consumption of 4 room flat in Singapore for 2011 (Latest figures from EMA): 5640 kWh

Number of 4 room HDB households able to be powered annually: 2,404,624,277 / (5640 x 12) = 35,529 households

Total number of HDB Dwellings in Punggol: 24,859

Number of years Punggol could be powered by savings: 1.4

Power and Cooling — Punggol

Server Admin Savings

Total savings from 2003 – 2020:

  • USD $1,100,000,000.00
  • SGD $1,320,000,000.00

(Conversion rate: 1USD = 1.2SGD)

Median Monthly Income of a Singaporean: S$3249

Number of people you can hire a year based on savings: 1,320,000,000 / (3,249 x 12) = 33,857

Number of Jalan Besar stadiums you can fill up: 33,857 / 6,000 = 5.6 stadiums

Server Admin — Jalan Besar Stadium

Floor Space Savings

Total savings from 2003 – 2020:

  • USD $50,000,000.00
  • SGD $60,000,000.00

(Conversion rate: 1USD = 1.2SGD)

Average Office Rental in Grade A Suburban per square foot: $4.53

Equivalent office space saved in square foot: 13,245,033

Average area of Flower Dome at Gardens by the Bay: 19,167

Amount of space saved in terms of the number of the times of the Flower Dome: 13,245,033 / 19,167 = 57.6

Floor Space — Flower Dome

With Virtualization, it can help your business to transform and change, in terms of better business agility and flexibility, a reduction in operational expenses and greater environmental sustainability.

* Information and Photographs Courtesy of VMware and Edelman PR *

* Photographs taken by photographer friend Callan Tham *

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