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.
Corporate Affairs Commission (CAC) in partnership with the Nigeria Inter-Bank Settlement System (NIBSS) has unveiled a new Application Programming Interface (API) integration system to allow private firms access company data from the Commission’s database.
Hussaini Ishaq Magaji (SAN), registrar general of CAC, who spoke in Abuja at the unveiling said the system would give selected private organizations access to CAC services through technology-based companies, called “super agents.”
“This is a practical step to show that the Commission is committed to meeting the expectations of our customers,” he said.
Magaji explained that the integration allows the agents to retrieve data from the CAC database for use in specific client requests, outside the standard services provided by the Commission.
“Before now, only a few government agencies had this integration, especially those involved in investigations, anti-money laundering, and terrorism financing. Now, private companies that meet the criteria can also access it,” he said.
He said the system complies with the Nigerian Data Protection Act 2023, and information such as residential addresses, phone numbers, and dates of birth may be restricted.
“This is a call to law firms and companies with the right technology. We’ve started with NIPS because of their credibility. Embassies and banks can now authenticate company records directly through them.”
“There are prescribed fees. We already collect them on our portal, and now customers can also pay through these agents,” he explained.
He named NIPS, MoneyPoint, and OPE as some of the companies involved.
“OPE and MoneyPoint handle only registrations. But NIPS has moved further into validation and verification,” he said.
Ngover Ihyembe-Nwankwo, executive director at NIBSS, who represented Premier Oiwoh, managing director, said the service allows secure and efficient data verification.
“This is the result of years of effort to connect our systems with CAC. It will help users verify data within the limits of data protection laws,” she said.
She said the move is a way to lower costs and promote interoperability across the financial sector.
Ministry of Interior has announced the launch of a new Online Citizenship and Business Management Platform in line with the Renewed Hope Agenda of President Bola Tinubu.
A statement signed by Dr Magdalene Ajani, permanent secretary, Ministry of Interior’s said the initiative forms a key part of its ongoing reforms aimed at promoting transparency, enhancing operational efficiency, and significantly improving service delivery to the public.
The new digital platform is designed to streamline the application and processing of citizenship and business-related services, ensuring faster turnaround times and improved user experience.
The platform allows users to apply for and manage business permits, ensuring that both local and foreign businesses operate legally in Nigeria.
It includes an Expatriate Quota System to manage work permits for foreign employees, helping companies hire skilled workers while complying with Nigeria’s immigration laws.
The Citizenship Administration and Management System provides a streamlined online process for applying, tracking, and managing Nigerian citizenship applications and related services.
Members of the public, corporate entities, and other stakeholders are expected to access the platform through the ministry’s website: https://interior.gov.ng , Direct Portal Access: https://candb.interior.gov.ng , or contact candb-support@interior.gov.ng for support and inquiries.
“The Ministry of Interior remains committed to establishing a more efficient, transparent, and secure framework for citizenship administration, while continuously enhancing service delivery through digital transformation,” the statement read in part.
Fifty selected young unemployed Nigerians have completed a four-week intensive digital skills bootcamp under the Digital Literacy for All (DL4ALL) initiative, gaining practical training in Data Science, Artificial Intelligence (AI), and IT Essentials.
The programme, a collaborative effort between the National Information Technology Development Agency (NITDA) and Cisco, was hosted at NITDA’s South West Zonal Office in Victoria Island, Lagos.
Speaking on behalf of the Director General of NITDA, Kashifu Inuwa , the Head of the South West Zonal Office, Mrs. Chioma Okee-Agugwo, described the initiative as a vital component of Nigeria’s digital future. “This is not just a closing ceremony. It is the launchpad for new journeys—anchored in digital knowledge and powered by innovation,” she remarked.
According to the Director General, the initiative is rooted in NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0) and reflects key focus areas including Digital Literacy, Emerging Technologies, and Youth Empowerment. It also aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which seeks to accelerate economic diversification through digitisation, innovation, and skills development.
Inuwa noted that the DL4ALL initiative forms part of Nigeria’s broader commitment to digital inclusion—ensuring that no one is left behind in the evolving digital economy. It also supports the ambitious goal of achieving 70% digital literacy by 2027, championed by the Honourable Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani. This national vision aims to equip millions of Nigerians with the skills required to thrive in a tech-driven world.
He further emphasized the importance of empowering youth with globally relevant skills. “They are no longer just consumers of technology. They are creators, innovators, and future employers,” he said.
The NITDA boss explained that throughout the bootcamp, participants engaged in hands-on learning experiences designed to build both technical proficiency and digital leadership capabilities.
“This is only the beginning,” he stated. “Through our zonal strategy, we are bringing innovation closer to local communities. This is how we democratise access and unlock Nigeria’s full digital potential.”
Inuwa expressed appreciation to Cisco for delivering high-impact training and called on stakeholders to continue investing in partnerships, people, and platforms that drive digital inclusion.
He asserted that the newly certified participants are now equipped to contribute meaningfully to Nigeria’s digital economy—armed with the skills to build solutions, secure infrastructure, and launch tech ventures that solve real-world problems.
At the end of the bootcamp, participants demonstrated their knowledge through impressive presentations that showcased the integration of skills acquired across Data Science, AI, and IT Essentials. Many spoke passionately about how the programme had expanded their technical competence and sparked a drive to create job opportunities—not only for themselves but also for others—as entrepreneurs and digital solution providers in their communities.
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