Question

Explain TCO and describe how virtualization can reduce TCO.

Answer 1

Virtualization essentially lets one computer do the job that multiple computers were supposed to do by sharing the utilities of a single machine across different environments. Virtual servers let you install multiple environments remotely without having to bother about physical requirements which are handled by the service providers and thus cutting the cost for all the physical handling of these servers. Moreover, the load balancing of these servers are automatically handled so there is no need of adding/removing server from our side depending on the load which is a huge headache for everyone. Since the utilization of the resources is managed properly, we recieve high availability of resources and improved resource recovery from damages. So Total cost of ownership (TCO) will be reduced by a huge amount due to these factors. the cost of all physical resources, load balancing, recovery from damage is handled automatically so all we have to do is pay for the fixed amount of the services that we take. So the amount is always constant and there will not be any unnecessary losses and thus reducing the TCO.