Small Businesses Can Use Virtualization To Cut Costs

Small Businesses Can Use Virtualization To Cut Costs


Some owners of small businesses may think that virtualization is only beneficial for large businesses, but there are a number of factors that can help them determine whether the move is right for them. Virtualization could be a key tool in helping small businesses cut costs, further boosting their success and drive to obtain more business capital to increase operations.

Those not in the IT industry may not know exactly what virtualization is or does. It often is confused with cloud computing, but instead, virtualization is the technology that powers cloud computing, according to BusinessNewsDaily. It is a software that separates physical infrastructures to create dedicated resources, the source explained.

“Virtualization software makes it possible to run multiple operating systems and multiple applications on the same server at the same time,” said Mike Adams, director of product marketing at VMware, a pioneer in virtualization and cloud software and services. “It enables businesses to reduce IT costs while increasing the efficiency, utilization, and flexibility of their existing computer hardware.”

Various virtualization benefits

There are a number of criteria small businesses should consider before opting for virtualization. The move maximizes resources, cutting down on the number of physical systems that a company needs to require, while also getting more value out of servers. Virtualization users also have the benefit of running multiple types of applications and operating systems on the same physical hardware. It also allows companies to integrate all operating costs into their IT budget.

“Generally speaking, businesses who work more on an OPEX model that have less IT staff and fewer security concerns are more cloud-oriented,” John Livesay, vice president of a network infrastructure services provider, said to BusinessNewsDaily. “Businesses that need greater control for integration and security or who work more on a CAPEX model would lean towards virtualization.”

Is it right for you?

Fox Business outlined some factors to help small business owners decide whether virtualization is right for them.

First, owners should determine whether they have a robust IT environment that would benefit from streamlined processes. If your operations rely on a number of servers, virtualization could help cut costs and boost productivity.

Determining how your company’s IT needs will change as the business grows also is key. If your company employs an in-house IT team, virtualization could help them focus on more pressing matters, such as keeping all company information and data safe from cyber attacks.

Finally, small business owners should investigate to see if there’s a virtualization system that meets their needs, because smaller operations typically have much different needs than large corporations. Some providers offer services with only basic features, which may be a good fit for small companies.

“Virtualization is certainly not just for the Fortune 500-sized companies,” Allen Hall, senior virtualization engineer at technology infrastructure provider Align Communications, said to Fox Business. “Even small businesses can use virtualization to reduce operational costs and increase application availability, while enabling them to respond to changes more quickly.”

Any companies that opt for virtualization to cut costs and streamline operations can do so with the help of financing from nontraditional lenders such as National Funding. Ease of access and more flexible loan terms are perfect for small operations looking to increase their presence.