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In the last major IT buildout, we saw IT organizations adding large numbers of small
and medium-sized servers to host their rapidly expanding IT application portfolios.
During this time, the best practices involved deploying a single application on each
x86 server to avoid crashes or performance problems. However, this approach led to
very low utilization and higher support costs, the most obvious of which are the
acquisition costs associated with needing to overprovision servers. Additionally, there
are the ongoing expenses; for example, a server operating at 10% utilization still
requires the same amount of power and cooling as a server operating at 75%
utilization. In the current state of the market, for every $1.00 spent on new servers,
the average enterprise spends $0.50 on power and cooling. Further, for every new
$1.00 spent on infrastructure, the average enterprise spends $8.00 on maintenance
and operations, assuming a server to admin ratio between 20 and 30 to 1.