This paper from Dell independently compares the Total Cost of Ownership (TCO) for various enterprise applications hosted on select configurations of proprietary RISC based UNIX servers from SUN, IBM and HP versus hosting on industry standard Dell PowerEdge Xeon based IA-32 servers running Microsoft Windows Server 2003. The paper compares the capital investments, change costs, annual recurring operating and capital expenditures, availability, security risks, and business value of these competitive solutions for several different workloads which can benefit from scale-out vs. scale-up architectures: database, web solution bundles, application hosting / re-hosting and retail branch office automation.
In examining ways to achieve greater business value from IT, recent studies by IDC on Infrastructure Optimization strategies has demonstrated that implementing best practices can help to significantly reduce operating costs and boost service levels and agility. The study was conducted on almost 1,000 organizations, and analyzed the impact of maturing organization from a Basic practices level where IT operations are uncoordinated and manual and IT is seen as a cost center, through Standardized, where there is a managed IT infrastructure with some automation and knowledge capture to Rationalized, where IT is a business enabler, infrastructure is managed and consolidated and there is extensive automation, knowledge captured and re-used.
To help organizations understand which operating system and server infrastructure offers the best business significance, Total Cost of Ownership (TCO) analysis was utilized. When making a purchasing decision, initial procurement price is certainly important - selecting the lowest cost asset in order to save the company money, but studies have shown that if one consider the cost of the asset from initial purchase through deployment, maintenance, support, management, and ultimately to retirement, less than 20% of the costs are for the initial hardware and software investment.
This paper published by Alinean, a team that has been the pioneering builder of tools to help quantify and improve the ROI and TCO of IT investments, describes about Lower TCO through server consolidation. It examines trends in server virtualization and consolidation, and presents a detailed case study on the results that can be achieved through server consolidation on IBM System p5 servers. This paper also states that the new System p5 servers from IBM provide a flexible platform for the consolidation of diverse applications.