Why Buy for the Big Guy

Why Invest in IT … for Large Enterprises

In my blog titled top 10 reasons to buy in a recession  , I discussed generic reasons to invest.  For large enterprises with a large install base of servers (multiple data centers, row and rows or rooms and rooms of servers), you have the economies of scale on your side.  Most likely, about 40% of your existing servers use single-core processor technology and another estimated 40% based of dual-core processor (source IDC).  Running existing infrastructure on these slower servers is just plan inefficient compared to the new servers available on the new Intel Microarchitecture (Nehalem) – intel's 3rd generation of quad-core processors for 2 socket servers.

Based on Intel estimates, replacing nine single-core based servers with one new xeon 5500 can yield up to 90% lower operating costs, delivering a payback on investment in  as short at 8 months (learn more here) … or … by upgrading single-core, dual-core or even the latest quad-core processors can yield performance enhancements that can boost productivity or open up new business opportunities. 

Even though this is day of introduction, there are four large companies today that have already identified the benefits of using these new processors.  See their results below

ð       Play saw roaming mobile transaction times reduce from 102 minutes to 44 minutes from last years quad-core processors and expects to be able to reduce the cost of running its data centre with these energy efficient servers.

ð       Capgemini tested a virtualization environment and sees ability to help their development team be more productive while strengthening customer offerings … as exhibited by a reduction in response time from 12.46 sec to 5.56 seconds compared to last years quad-core processors

ð       The Technical University of Munich saw processing speeds increase by 66% and experience 4x memory bandwidth for applications leading them and their customers to consider new projects and compute models for their research and business.

ð       Business & Decision saw the ability for 20:1 virtualization ratios with utilization levels at approximately 55%, providing the ability to improve customer service levels, productivity, reduce implementation costs by 50% and anticipates a ROI of < 1year. 

The bottom line is that these customers are moving forward with technology investment as a core strategy to boost their business and cut costs – helping them to emerge stronger and more competitive in their industry as economic conditions improve.

What could the Intel Xeon processor 5500 series based server do in your business?