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Space program: carriers that use virtualization to maximize server capacity find cost-saving isn't the only benefit.

Article Excerpt
Despite having completed a data center upgrade in 2004, Nationwide Mutual Insurance Co. was still dogged by server sprawl.

"We predicted that we were going to be pushing the upper limits of that [upgrade] project in five years or so," said Robert Costanzo, an assistant vice president at Nationwide Service Co., a unit of Nationwide.

But rather than face another upgrade in 2009, the Columbus, Ohio-based insurer instead became an example of how carriers are using virtualization to control costs by maximizing capacity within existing server space.

Virtualization involves masking a server's resources, such as hardware and the operating system, from the end user, and being able to capture and redeploy that server image into another location without impacting those users. The ability to replicate a server's imprint, coupled with the agility to quickly redeploy mimicked files and applications within unused server space, has driven down IT energy costs. As companies strive for efficiency, the days of each application having its own server may be drawing to a close.

In Nationwide's case, the company eliminated nearly 700 physical servers by moving those functions onto virtual servers at a consolidation ratio of 13-to-1, according to VMware, the virtualization software provider that was utilized in part of the project. Now, Nationwide is able to requisition a new server in 48 hours as opposed to the 45 days it had taken.

[ILLUSTRATION OMITTED]

"We wanted to be able to support more infrastructure or more applications with the same or less staff," Costanzo said. "We accomplished those goals. I guess the biggest benefit was really extending the life of the data center, which is what we set out to do."

Proven Savings

Costanzo said VMware's software was utilized for Nationwide's Windows and Linux operating systems, and generated $2.2 million in savings on hardware expenses. But that wasn't the end of it.

According to Celent, Nationwide...

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