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Report: Government agencies experience massive savings through virtualization

Government agencies represent one of the most notable demographics to benefit from implementing virtual servers and other technologies. In fact, a new study from CDW Government, titled the Efficient Agency Report, these services can help state and public sector organizations improve efficiency and reduce operating expenses.

"Agencies have a solid case for reinvesting their savings in technology solutions that drive further savings and operational efficiencies," CDW-G director of state and local governments David Hutchins said. "The invest, save and reinvest cycle should help agencies conserve limited IT dollars."

According to the study, organizations that used virtualization and cloud computing experienced returns on investment ranging from 134 percent to 269 percent. Server virtualization, in particular, tended to be implemented first and allowed other solutions, like the cloud and storage virtualization, to cost less than $400,000 due to reinvesting savings, compared to individual costs of more than $1 million each.

IDC noted that more than 23 percent of all servers shipped in 2014 will incorporate virtualization technologies, meanwhile 70 percent of all workloads during the same time will be installed on virtual machines. As more organizations experience the cost-saving and efficiency-improving benefits of virtualization, the market for the technology will expand as its adoption rises.

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