Server Costs Declining

Thursday, October 11, 2007

…..The Computer Economics report, “The Shifting Mix of Data Center Costs” (October 2007), examines the major categories of data center cost for Unix and Windows servers on a per-unit basis for the years 2002 through 2006.  It also analyzes how these costs have been changing and makes recommendations based on these trends.  The data for this analysis is based on data-center benchmark studies of Unix and Windows server farms conducted over the past five years by Metrics Based Assessments (MBA)…..The benchmark finds that data center costs normalized on a per-processor basis have been declining over the past five years.  For example, the average total cost for Unix fell from $33,600 per processor in 2002 to $29,300 in 2006 – a drop of 12.8% over five years.  During the same time period, the average total cost per Windows processor fell from $13,900 to $11,900 – a drop of 14.3%.  The analysts clearly state that the findings do not indicate that Unix is a more costly platform than Windows.  Costs reflect real world differences in how Unix and Windows processors are used.  A larger percentage of the Unix systems run high-end applications, which require larger, more expensive processors, more disk space, and additional license fees for system, database, and resource management software…..In each of the five years, MBA obtained 80,100 observations for each platform, of which approximately 40% were repeat observations from previous years, providing a basis for tracking changes in data center spending over the five-year period.   The costs in this analysis include: data center hardware, excluding network hardware; operating systems, utilities, database, and other infrastructure software (applications software cost is not included); data center personnel; other data center costs, such as data center supplies, facilities, outsourcing, disaster recovery, off-site storage, training, etc.

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