IRS saves millions with server virtualization, IG says

Successfully virtualizing some of its servers helped the IRS save $10.2 million in equipment costs over two years, reports Alice Lipowicz in Federal Computer Week.

An additional $1.3 million in annual savings is expected to accrue starting in fiscal 2013, as a result of reduced electricity needs, according to a report issued May 7 by the Treasury Inspector General for Tax Administration.

There also is potential for another $7.7 million in savings to be generated over the next five years if the IRS virtualizes all its servers, and the report recommended that the IRS do so.

Server virtualization is a technology that allows several “virtual” servers to run on one physical host. The technology is said to improve hardware utilization, save on electricity, and reduce server replacement costs.

The IRS worked with contractors to develop the consolidation and server virtualization program, with installation beginning in 2009.

By October 2011, the project team had established a virtual server environment, with approximately 1,800 virtual servers running on 234 physical host servers at 13 data centers. Another 1,500 servers are expected to be virtualized by the end of fiscal 2012

To read Lipowicz’ full report click here

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