How to Lower Costs with IaaS and Virtualization

The introduction of cloud computing to business has brought about a revolution in the field of IT operations. It not only has helped smaller companies gain access to utility software, but also has helped decrease the operational cost for most small and medium enterprises. IaaS, or Infrastructure as a Service, is a provisional model wherein organizations can outsource the equipment used to support daily operations. These include storage, servers, hardware, and networking components. The service provider operating in the cloud base owns the equipment and takes care of all the maintenance needs required for housing and running the cloud. All the client needs to do is to pay for the services, which often costs less than hiring dedicated employees on staff to do so.

Learn more about saving money through Infrastructure-as-a-Service and Virtualization strategies:

How IaaS Saves Businesses Money

IaaS goes a long way in lowering the overall operational cost for the company. If we take an example of the overall server hardware cost, adopting IaaS may help to reduce the overall expenditure by about 10% of the total cost of ownership. There are companies operating in the cloud platform that promise to reduce this cost even further. For organizations with a limited budget plan, this could be incredibly beneficial as it reduces their operating costs dramatically. Characteristics and components of IaaS include:

  • Dynamic scaling
  • Internet connectivity
  • Desktop virtualization
  • Policy-based services
  • Automation of administrative tasks
  • Utility computing service and a billing model


IaaS can also help to save on electricity costs by yet another 10% or so. A modern server operating from the cloud platform seeks the help of a server operator and the data centre engineers cooperate to ensure that an efficient environment is provided to the host organization. Opting for IaaS ensures that the connection with the outer world remains uninterrupted. It also ensures that services are available to clients at a greater speed. With IaaS infrastructure, say goodbye to costs related to network equipment - especially switches, routers, and cables.

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Reducing Costs through Virtualization

Through virtualization, a virtual version of the server is created which helps to address all the network resources. This permits the hardware to run many operating system images at a time. This also helps to reduce operating costs. For example, updating 500 desktops would require installation of a business application while simultaneously purchasing additional 32-GB RAM servers and two Quad Core processors each. Thus, using virtualization would mean a cost reduction of approximately 90 percent.

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IaaS and virtualization are two different means of attaining the same goal. If a company is planning to cut operational costs to an extent or even is operating under a limited budget, then IaaS would be an ideal solution. IT solutions such as virtualization are best administered through a managed services approach in which a company outsources some or all of the IT management responsibility to an IT company. Learn more, by reaching out to iCorps for a free consultation.


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