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Virtual Servers and Colocation in the New Data Center Offer Improved Savings

September 21, 2012

A recent investment of $2.4 million by The University of Texas System is enabling Information Technology Services (ITS) to dramatically reduce rates for virtual servers and co-location of IT devices at the new University Data Center (UDC). These rates are in effect for three fiscal years beginning September 2012. UT System granted UT Austin this additional funding to help address the highest-risk information security areas identified in a recent independent, external information security audit.

Beginning this fiscal year, both existing and new campus customers are able to use the reduced rates - from $300/VMU/year to $100/VMU/year - for commodity Virtual Machine Units (VMUs). Co-location of IT devices (e.g., servers) from units is also more affordable beginning this fiscal year. The co-location rate has been $1.70/watt/year (around $700/year for an average system). As of September 1, 2012, both current and new customers can take advantage of the new rate which has been reduced to only 90 cents/watt/year (around $370/year for an average system.

The overarching goal is to reduce risks and increase our information security profile by virtualizing or co-locating 1,000 existing, physical servers during the next two fiscal years. We are confident that UT Austin will be able to meet or exceed this objective.

This rate reduction is due to better negotiated pricing for hardware, storage, and software licensing, as well as the new UT System funding.

Cam Beasley, Chief Information Security Officer, worked with UT System to secure the additional funding. Pei Chen, Director of ITS Systems, took the lead in negotiating better virtual machine pricing as well as leading the effort to collaborate with the rate setting team in the Office of the Chief Financial Officer to develop and confirm these lower rates.

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