E-Business
How Virtualization Can Reduce Organisation’s Energy Costs
Virtualization can enable cost savings for organizations in multiple ways. This article explores those instances and points out how the overall power savings from virtualization can boost the environmental credentials of the private and public institutions that adopt it.
Each year, organizations devote a substantial amount of their budget to providing power for their operations. Energy costs are on the rise, and so is its consumption. With companies and public agencies running on an increasing number of devices, costs are expected to trend upward still.
The Nigerian context brings an extra dimension to the situation with energy costs in the country. For most businesses, power from the public grid isn’t enough. They often have to augment it with expensive alternatives. One estimate puts the total annual spend on power by businesses at ₦5 trillion.
Given this situation, it’s easy to see why businesses are on the lookout for legitimate ways to cut their power costs. Virtualization technology provides them with an effective way to do just that.
What Is Virtualization?
Virtualization refers to the creation of a virtual version of an actual thing, including Operating Systems, servers, storage devices, and other computer platforms and network resources.
The virtual versions sit atop the actual component and run just like them. Virtualization is done by deploying software that divides the physical resource into multiple virtual instances.
Here’s an example. Given a single physical server, multiple virtual servers could be created to run atop that server, and work just like it. Each of those virtual servers will perform the same functions that a single physical server would.
The same sort of thing happens with virtual Operating Systems. If you have virtualization software on your computer, you could create multiple Operating Systems—called Virtual Machines –that would run alongside the single Operating System that the computer previously had.
This ability to run several instances of a single component is at the core of the cost savings that virtualization can guarantee.
In the following sections, we explore some of the ways by which virtualization achieves lower costs for the organizations that adopt it.
Virtualization and Server Consolidation
Datacenters consume a lot of electricity. One widely cited report from 2018 (contained in the journal Science) suggests that they take up about 205 terawatt-hours of electricity annually—that’s about 1% of electricity consumed worldwide each year.
It follows that thanks to the energy costs associated with them, datacenters cost a lot to maintain.
A greater part of that expense–40% in one report–comes from running servers. Considering that many servers only have a single application running on them per time, it’s clear that a lot of spending is going into keeping those applications up. It also means that these servers are sitting idle most of the time, adding even more expense for little or no workloads.
With virtualization, these costs can be cut significantly. Virtualization enables the consolidation of the number of servers in a data center, enabling businesses to run several applications and Operating System workloads on a single server. In many cases, a company could have ten workloads running on one server; but it’s possible to have several times that number on one server.
This consolidation translates to a reduction in the number of servers needed, and a substantial increase in the utilization of server capacity. Capacity use could increase from about 15% (which is typical) to as much as 80%. Energy savings may increase by up to 80%, and energy costs are cut by a significant amount.
Scalability and Tailoring Resources to Current Needs
Energy costs can increase or decrease depending on the demand placed on the resources that consume power. These variations may occur over short periods, such as hours within a day. They could also be longer-term, such as the growth of a company.
If an organization experiences any of these instances, it may have to spend a lot on acquiring new capabilities. Its response in any of these cases may also be slowed down due to hardware handling issues and associated costs.
Virtualization can enable organizations to scale resources quickly and meet growing demand. Whether the demand on resources fluctuates over a short period, or resources have to be matched to company growth, creating virtual versions of those resources can take care of those needs.
Often, businesses may maintain ‘excess capacity’ just so they can utilize that capacity when the occasion calls for it. This happens when they are principally dependent on hardware or other actual components, and less on virtual versions of them. With virtualization, they can power on or power off capacity, and save the cost of dormant resources.
Virtualization’s Impact on the Environment
By reducing the amount of energy that has to be consumed per device, virtualization shrinks the potential impact that their use could have on the environment.
By one estimate, each server that is virtualized saves 7,000kWh of electricity and four tons of carbon dioxide emission per year. It cuts down the amount of space that’s required in a data center, thus reducing both the cost of managing it and its possible impact on the environment.
Another way in which virtualization helps mitigate the environmental impact of technology is its cutting down on hardware that needs to be decommissioned at the end of its lifespan. Electronic waste is known to be a major environmental hazard, and the failure to properly dispose of them could mean that they become a physical pollutant. If companies opt for virtualization instead of acquiring new hardware, they could drive down the number of hardware that will eventually be decommissioned.
Layer3 Provides You with the Benefits of Virtualization
If you would like to enjoy the many benefits of virtualization, you can do so with the virtualization products available from Layer3.
Our solutions can help you reduce your hardware and operating costs by up to 50%, and cut down the time it takes to provision new servers by up to 70%. We also enable you to automate your virtual infrastructure, avoiding planned downtimes and eliminating repetitive configuration and maintenance tasks.
Let’s provide you with a virtualization solution that meets your needs. To get in touch with us, click here.
Media Rights Agenda (MRA), has unveiled a visual brief emphasizing the critical need for responsible and ethical use of Artificial Intelligence (AI) in journalism, particularly within Nigeria’s evolving media environment.
This is coming ahead of World Press Freedom Day today.
The visual brief, developed under this year’s global theme, “Reporting in the Brave New World – The Impact of Artificial Intelligence on Press Freedom and the Media,” explores the opportunities and dangers AI poses to media freedom in Nigeria and across the world.
In a statement released in Lagos by John Gbadamosi, its programme officer,MRA noted that AI is quickly changing the way news is produced and consumed, adding that it offers powerful tools that can assist journalists in analysing data, translating stories into local languages, and extend the reach of vital information, especially to underserved areas with limited media infrastructure.
Gbadamosi added that AI can help to ensure that essential news and information are also disseminated to local communities.
However, Gbadamosi warned that the same technology is being weaponised to undermine truth and press freedom, saying: “While AI can be used to advance journalism, it can just as easily be exploited to spread disinformation, create deepfakes, and drown out independent voices with algorithmically generated propaganda.”
According to him, “In Nigeria, journalists face threats that go beyond just physical dangers; such threats now also encompass digital, algorithmic, and systemic harms and challenges, which requires media professionals to ensure that AI enhances, rather than undermines, media freedom and that technology is used to promote the truth, not distort it.”
“The visual brief breaks down key concepts like misinformation, disinformation, mal-information, and information overload, which are increasingly shaping Nigeria’s digital media ecosystem. It also raises concerns about AI-enabled surveillance, political manipulation, and the marginalisation of community-based journalists.”
Gbadamosi stated that the visual brief also advocates support for independent media, transparent AI regulations aligned with Nigeria’s context, increased digital literacy, and stronger accountability from tech companies regarding platform content and influence.
He therefore urged all stakeholders to advocate for responsible AI usage and a free, independent, professional and vibrant media environment in Nigeria, stressing that “when media freedom thrives, democracy lives.”
The National Identity Management Commission (NIMC) has raised the fees for all its products and services, including charges related to data modification on the National Identification Number (NIN) database.
In a statement issued in Abuja, Kayode Adegoke, NIMC’s Head of Corporate Communications, announced that the updated service fees are published on the commission’s official website.
Adegoke noted that the new pricing structure for NIMC’s services and products marks the first comprehensive review of its fees in over a decade.
The statement stated that the revised pricing is designed to align with prevailing operational costs and industry standards, while continuing to ensure that services remain accessible and affordable for all Nigerians.
The statement warned its Front-End Partners (FEPs) to comply with the newly approved rates, stating that any failure to do so could attract strict sanctions, including possible license revocation.
“The new structure ensures that the quality and integrity of our services remain uncompromised. We are committed to protecting the interests of Nigerians through fair and transparent pricing,” the statement read.
NIMC urged the public to report any Front-End Partners (FEPs) found charging beyond the approved rates. Reports can be directed to the Commission’s Inspectorate and Enforcement Unit via email at ieu@nimc.gov.ng
It further reaffirmed its commitment to delivering secure and dependable identity services. A complete list of the revised service fees can be accessed on its official website at www.nimc.gov.ng.
In a related development, Abisoye Coker-Odusote, Director General of the National Identity Management Commission (NIMC), expressed sincere appreciation to President Bola Ahmed Tinubu for his unwavering support in enhancing the National Identity Database (NIDB).
She also extended her gratitude to the Minister of Interior, Dr. Olubunmi Tunji-Ojo, and other key partners for their pivotal roles in advancing a sustainable and effective identity management system.
Artificial intelligence (AI) adoption could boost Africa’s gross domestic product by an additional 4.9 percentage points by 2035, as the African economy is reshaped by the emerging technology.
This is according to PwC’s recently released report: Value in Motion. It is based on data-driven scenario analysis, which reveals that globally, AI has the potential to boost economic output by up to 15 percentage points over the next decade.
The global growth dividend from AI varies according to the region and depends on more than technical success – it also hinges on responsible deployment, clear governance, and public and organisational trust, notes the report.
This would effectively add one percentage point to annual growth rates − on par with the growth increment the world began enjoying with 19th century industrialisation.
In other scenarios analysed by PwC, characterised by lower trust and co-operation, the incremental boost to the economy from AI would be more muted at 8%, or in a pessimistic scenario just 1%.
The research finds that rapid reconfiguration of the economy is already under way. PwC analysis indicates the pressure for African businesses to reinvent themselves is at some of the highest levels seen in the last 25 years across six out of nine sectors in Africa.
The $150.54 billion in revenue in Africa is set to shift between companies in 2025 alone, a trend that begun prior to the recent global increase in tariffs.
PwC’s research suggests that over the next decade, industries will reconfigure to meet human needs in new ways, leading to the formation of new ‘domains’ that cross traditional sector lines.
Dion Shango, PwC Africa CEO, explains: “As the structure of the economy transforms, value will increasingly come from organisations that can connect the dots across traditional industry boundaries. By focusing on evolving customer needs and using technology to dramatically change the way business operates, business leaders can unlock a step change in growth.”
According to Google’s Digital Opportunity of Africa report, AI could contribute up to $30 billion to Sub-Saharan Africa’s economy by 2030. Africa stands to accelerate its growth through AI as more people gain connectivity and harness technology for good, it notes.
“Across the continent, a new generation of innovators are harnessing technology to solve some of the world’s most pressing challenges,” says Google.
In terms of AI’s impact on the climate, PwC’s analysis shows that while AI is set to accelerate growth, the costs of physical climate threats will impose economic constraints.
PwC’s economic modelling suggests that physical climate impacts could result in the African economy being over 12%smaller (globally: 7%) by 2035 in all scenarios than it would have been otherwise.
“Increased AI adoption is expected to lead to increased energy use by data centres. However, modest use of AI to drive energy-efficiency could offset this increased use of energy. PwC estimates that the energy use and emissions impact of AI would be neutral if each additional percentage point of AI use led to innovations which cut energy intensity by just 0.1% globally,” says the report.
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