Server virtualization has been heralded as a significant way for organizations to create operational efficiencies, reduce IT costs and environmental footprint. Gartner says that the effective use of virtualization can reduce server energy consumption by up to 82%i, however, these savings are not a foregone conclusion. The research and advisory firm warns that IT Managers should be wary that 'virtualization can add cost and complexity' and advocates 'the use of additional (management) technology to attempt to bring the costs back into balance'ii. Gartner goes on to say that 'operationally, virtualization appears to be a "wash," at best – and it actually creates additional costs (people, process development and tools) on a worst-case basis'iii.

Certainly, what is true is that there is a direct correlation between the amount of savings that can be made through virtualization and how well you plan your virtualization project. You may see some immediate energy savings when virtualizing a server, but is important to be aware that although you see an initial cost benefit, spend can actually increase unless demand for that server is carefully managed. For example, if your servers are under-utilized, non-productive, over-provisioned or your virtual server environment sprawls out of control, the potential for dwindling savings or increased spend is amplified. This is what Gartner refers to as the 'Virtualization Catch 22'iv.

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