Virtualization: The Roadmap to IoT Cost Savings

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OT IT OT IT For more information on how virtualization can help you reduce OPEX and CAPEX costs, visit THE RESULT: Virtualization cuts capital expenses by eliminating additional hardware and consolidating workloads onto a single compute platform. It also results in operational savings by shortening development and test cycles, improving operational efficiencies, and reducing energy consumption. Many industrial control functions can be virtualized and consolidated onto standard IT- class servers for significant CAPEX and OPEX savings. This includes the use of software-based digital controllers, PLCs, DCSs, SCADA software, HMIs, historians, and applications. In a virtualized environment, manufacturers typically realize significant cost savings by simply updating software rather than replacing complex physical equipment, as well as by consolidating IT and OT systems. THE VIRTUALIZATION ADVANTAGE: The use of a virtualization platform can enable multiple physical controller devices to be consolidated as multiple virtual machines running on a single compute platform. 3 2 IT AND OT ARE CONVERGING: 50% of operational technology (OT) service providers will create key part- nerships with IT-centric providers for IoT offerings by 2020. THE RESULT: New platforms, including virtualiza- tion, allow manufacturers the ability to reduce capital spending by shift- ing from the practice of equipment replacement to digital upgrades. Operational expenses also decrease over time as "dumb" equipment is re- placed by smart, leading to increased productivity, uptime, and quality. 2 of OT providers will create IoT partnerships by 2020 50% 1 of manufacturers say legacy equipment is their top barrier 47% Legacy systems create CAPEX and OPEX challenges as manufacturers equip systems with IoT capabilities to process more data. Legacy industrial control systems installed over the past three decades create significant competitive challenges for manufacturers. Older systems lack the flexibility and security to meet modern demands. These outdated and inflexible systems require high maintenance and replacement costs and capital expenditures for upgrades. In addition, manufacturers often lack the skilled technicians to maintain and update the systems. Virtualization powering application workload consolidation enables critical infrastructure companies to slash their oper- ational costs by deploying secure, robust, flexible software- based solutions as alternatives to legacy, fixed-function hardware. THE ROADMAP TO IOT COST SAVINGS 1 CURRENT IOT COST BARRIERS: 47% of manufacturers say legacy equipment is the top barrier inhibiting them from adopting IoT technologies. THE RESULT: Manufacturers are left with outdated equipment that can't relay critical per- formance data they need to optimize their operations. They also may expe- rience extensive downtime related to constant upgrades. VIRTUALIZATION

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