Gotcha! How virtualization savings can vanish

As a consultant at Accenture, Jay Corn has seen IT organizations plan a virtualization deployment to drive down server operating costs - and then realize that they would achieve zero cost savings.

Here's the problem: If you host your servers at a colocation facility, chances are the service provider - not you - will get all of the benefits. The problem lies in the pricing models. "They still look it as one server image and they don't care if it's virtual or physical - they charge the same for it. That's definitely a big gotcha," he says.

ComputerWorld article