VMware released their new product vSphere 4. From their press release they state the following "VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop to the datacenter, today announced VMware vSphere™ 4, the industry’s first operating system for building the internal cloud, enabling the delivery of efficient, flexible and reliable IT as a service."Of all my favorite overused buzzwords "cloud computing" is my favorite because of the wide variety of different computing models it describes. Many people use the term having no real idea what it means just because its the popular buzzword and have no concept that even though your running "on the cloud" your connected to a physical server somewhere with the same physical resources as a standard server. A lot of people fail to do the math of the real costs and think they are saving a bundle of money when in reality their costs have increased using an external provider.
While VMware is guilty of abusing the "cloud" buzzword their new product vSphere is actually rather innovative. From their press release again. "Up to 20 percent additional power and cooling savings with VMware Distributed Power Management which uses VMware VMotion to automatically place all virtual machines on as few physical servers as possible without compromising service levels, and power down physical servers that are not needed. The power savings with VMware Distributed Power Management across all VMware vSphere 4 customers over one year could power a country the size of Denmark for 10 days"
Essentially one could have a cluster of hardware ready to go powered off and have vSphere actively powering on and off servers as needed and using vmotion to move VM's around the cluster. Not only are you not getting wear and tear on your hardware from being powered 24/7 there is an energy and cooling savings as well. Not to mention saving a lot of time with provisioning and capacity calculation. Resources as they are needed power up and down by themselves. Because there is less stress on the hardware it could also last longer as well providing more reliable service over more time. A whole cluster could be installed with more capacity than needed and then left unattended for many years. When the hardware fails its just taken out of the pools of machines. As the compute resources increase more machines in the cluster power on to be utilized providing an almost hands off administration experience for the entire lifespan of the installation.
Now if it were only priced reasonably. The Full featured top of the line version of vSphere costs $3,495 per processor. Their stripped out bottom of the line version is $795 per processor. Depending on your hardware the OS could easily excede the costs of your hardware investment. At these prices power and administrative staff seem really cheap.



