When a company goes virtual, that doesn’t mean layoffs are imminent.
At least, that’s what Info-Tech Research Group advocated to tech executives who gathered last week at the Westin O’Hare Hotel in Rosemont.
Sure, virtualization could help save the company money by optimizing its computer system. It likely could eliminate some jobs. But that doesn’t mean the people doing those outdated jobs should be let go, said Jennifer Colasanti, Info-Tech research consultant.
“Those (affected) workers should be re-commissioned to help the company grow,” Colasanti said.
Virtualization is a software that’s added as another layer between the company’s hardware and its operating system. Often it decreases the number of servers used 6 to 1, said Colasanti.
That means, your desktop likely will no longer need that computer box underneath or below your desk. The PC would allow remote access and operate directly from the server.
But she advised that virtualization is more quickly done at small- to mid-sized companies due to the fewer number of bureaucratic approvals needed. The larger the company, the longer it would take, and the more expensive the whole project could be, she said.
Info-Tech conducted a survey last December with 1,900 responses that showed that among the largest companies, 39 percent have virtualized and 19 percent are considering it. Large companies were defined as having more than 1,000 employees.
The intention to do virtualization was 23 percent at companies with 501 to 1,000 employees.
The drawbacks to virtualization include larger system back-ups, the newly trained staff may seek bonuses or higher salaries in the future, and huge consolidations may not be possible, depending on the system, its design and how it will be used.
Still, virtualization aims to reduce hardware costs about 40 percent to 60 percent, depending on the project, she said.
“Virtualization helps a company to grow and there’s a greening component as well,” she said. “There are fewer servers being used and that’s less space and less power used.”
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