Download Dell PowerEdge R710 solution with Hyper

the Dell PowerEdge R710 solution and measured how many VMs this newer solution could run, while obtaining
OPM in each VM equivalent to that of the HP ProLiant DL385 solution. The total number of VMs the Dell
PowerEdge R710 solution could handle determines the replacement factor. Based on our specific workload, the
replacement factor is seven. Figure 1 depicts this replacement factor for replacing seven AMD Opteron 254based HP ProLiant DL385 solutions with a single Intel Xeon Processor X5550-based Dell PowerEdge R710
solution, as well as the initial investment payback time of around 16 months.
Figure 2 graphs the payback period and the cost savings of the Dell PowerEdge R710 solution. Savings continue
after the initial investment payback period. By the end of year two, we project a savings of $20,379. The line
representing the Dell PowerEdge R710 solution accumulates the initial investment cost and the monthly costs of
the solution. The initial investment cost includes the list price of the server and half of the cost of the shared
storage, as well as the costs of migrating from the seven HP ProLiant DL385 solutions to the newer Dell
PowerEdge R710 solution. The line for the seven HP ProLiant DL385 solutions shows the accumulated monthly
costs of seven HP ProLiant DL385 solutions. The lines cross at the end of the payback period. Appendix C
describes the payback period calculation.
$140,000
Dell PowerEdge R710 solution can pay back the initial investment in around 16
months
$120,000
$100,000
$80,000
$44,319
$60,000 initial investment
Break even at
$56,122
in 16.4 months
$20,379
savings at 2 years
$40,000
$52,728
savings at 3 years
$20,000
$0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Seven HP ProLiant DL385 solutions
Dell PowerEdge R710 solution
Payback period
Initial investment
2nd year savings
3rd year savings
1
Figure 2: The payback period and cumulative estimated costs for the seven HP ProLiant DL385 solutions and the Dell PowerEdge
R710 solution with Hyper-V. Lower costs and higher savings are better.
Costs for the Dell PowerEdge R710 solution include the initial investment of $44,319 plus annual costs of $8,615,
for a total year-one and -two cost of $61,549 for the solution. This solution could save approximately $20,379 by
year two over the $81,928 two-year costs for the seven HP ProLiant DL385 servers and HP StorageWorks
MSA30 storage arrays that this solution can replace. Figure 3 shows the specific areas of savings. Specifically, it
shows that the investment costs of buying the server and storage hardware and of migrating from the older to the
newer solution are offset by savings for the Dell PowerEdge R710 solution in hardware support costs, software
support agreements, facility costs (including switch costs), energy costs, and management costs.
1
We divide annual costs by 12 and do not adjust for inflation.
Principled Technologies, Inc.: Initial investment payback analysis: Dell PowerEdge R710
solution with Hyper-V vs. HP ProLiant DL385 solution
2