Jake Fellows Hosting in the cloud with a virtual data center is a game-changer for businesses looking to maximize their potential. The hassle and expense of managing a physical data center can be a major pain point for most small to medium-sized businesses (SMBs), holding them back from achieving their goals.
Instead of maintaining several physical servers, virtualized data centers let you run multiple systems on the same hardware. The reduced hardware requirements translate to substantial cost savings — industry reports suggest virtualization can cut data center costs by 31 percent.
This article will discuss what virtual data centers are, how they work, their benefits, and how to deploy one for your business.
Key points
- A virtual data center uses virtualization technology to maximize resource utilization and reduce hardware costs by running multiple virtual machines (VMs) on a single physical server.
- It enhances flexibility, scalability, and efficiency by abstracting physical infrastructure and enabling dynamic resource allocation.
- Common cloud service models for virtual data centers include IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service).
- Key benefits include improved resource utilization, cost reduction, automatic failover, enhanced disaster recovery, and the ability to scale as needed.
- Virtual data centers can be managed centrally, simplifying administration and optimizing security, backup, and recovery operations.
- Deployment involves assessing current infrastructure, designing the virtual environment, and performing phased migrations with thorough testing and validation.
- Liquid Web offers managed hosting solutions and expert support to help businesses implement and optimize virtual data centers for greater efficiency and scalability.
What is a virtual data center?
A virtual data center uses virtualization technologies to improve resource utilization and increase flexibility. Virtualization allows organizations to run multiple virtual machines (VMs) on a single physical server, reducing the need for expensive hardware and making the most of existing resources.
Virtualization software is used in a virtual data center to create and manage VMs. Various virtualization software options, including VMware, Microsoft Hyper-V, and Citrix XenServer, are available. Each option has advantages and disadvantages, so choosing the right software for your organization’s needs is essential.
What is data center virtualization, and how does it work?
Data center virtualization is the transformation of a physical data center’s infrastructure, such as servers, networks, storage systems, and other physical hardware, into a virtual server or software-defined data center (SDDC) to enhance flexibility, scalability, and efficiency.
In a virtual data center, the entire data center infrastructure is virtualized and decoupled from the underlying hardware. The software creates virtual machines that mimic server functionality instead of using dedicated physical servers. Rather than relying on physical storage arrays, the software enables the pooling of storage into virtual storage that can be provisioned.
In principle, here’s how a data center virtualization works:
- Virtual servers: Unlike dedicated physical servers, admins provide VMs on demand to handle workloads, dynamically allocating CPU and memory resources as required.
- Virtual storage: This pools multiple storage devices into a centralized, software-defined storage environment that efficiently carves up and allocates to VMs as needed.
- Virtual networking: Physical network gear like switches and routers are abstracted into virtualized networks that can be flexibly provisioned and automated.
- Automation and orchestration: With these virtualized resource pools at their fingertips, data center teams can use automation and orchestration tools to streamline provisioning, scaling, load balancing, and managing the entire virtualized infrastructure.
- Self-service portal or API: This enables end-users to spin up or scale VMs, storage volumes, and networks on-demand without procurement delays.
Types of cloud services
Cloud service models are designed differently from traditional on-premises IT to meet an organization’s specific needs. Here’s a run-through of the categories of cloud services and cloud deployments.
1. Infrastructure as a Service (IaaS)
IaaS offers on-demand access to servers and computing resources available over the internet. It allows you to gain real-time business insights, cut costs on hardware, reduce maintenance for on-premise data centers, and more.
Liquid Web’s IaaS lets you provision servers, networking, and storage in just minutes. It provides you with the flexibility to scale resources up or down rapidly. The result is a much faster path for getting new apps and services deployed.
2. Platform as a Service (PaaS)
PaaS provides combined cloud resources for developing, testing, delivering, and managing software applications. It typically includes middleware, development tools, and other services, so you can focus on coding your app without the complexity of buying and maintaining software or hardware.
- Examples: Google App Engine, Oracle Database
3. Software as a Service (SaaS)
This service model offers access to software applications over the Internet. Instead of installing or purchasing software licenses, users can simply access it via the web, with SaaS providers maintaining the underlying infrastructure.
Cloud deployments
Like cloud services, cloud deployment models such as public, private, and hybrid come with varying functionalities and unique configurations that satisfy specific work demands.
1. Public cloud
Public cloud services provide shared resources among multiple organizations, managed by third-party service providers who handle all infrastructure maintenance and updates. This model offers highly scalable and cost-effective solutions through a pay-as-you-go pricing structure, eliminating the need for significant upfront investments.
Public clouds are particularly ideal for businesses with fluctuating workloads, as they can quickly scale resources up or down based on demand without maintaining excess capacity.
2. Private cloud
In a private cloud, resources are dedicated to a single organization behind a firewall, providing enhanced security and control over computing resources. This model allows organizations to customize their infrastructure to specific requirements while maintaining better compliance management for sensitive data and operations.
Private clouds are particularly suitable for organizations in regulated industries or those handling sensitive data, as they provide complete control over data location, security protocols, and access management.
3. Hybrid cloud
A hybrid cloud blends public and private, with applications able to run across both platforms. This model enables maintaining sensitive data on private infrastructure while utilizing public cloud resources for less critical workloads, creating a balanced approach to security and scalability that adapts to changing business requirements. Organizations with aligned interests and goals build community clouds on shared infrastructure.
Traditional data centers vs. virtual data centers
Data centers are either traditional or virtual and differ in managing servers, storage, and networking resources.
| Aspect | Traditional data centers | Virtual data centers |
| Resource deployment | – Computing resources are housed in designated physical compartments on premises | – Computing resources are managed and deployed virtually in cloud environments using virtualization technologies |
| Resource utilization | – Lower resource utilization rates as servers are typically dedicated to specific systems and operations – Increased power consumption due to running multiple physical servers | – Higher resource utilization rates through systematic allocation and sharing of resources across virtualized environments – Optimized power consumption through efficient resource allocation |
| Flexibility & scalability | – Limited flexibility as scaling and allocation changes require hardware modifications such as new physical applications, servers, and storage devices, making it difficult to plan for future growth | – High flexibility and scalability make capacity and future growth planning easier by adjusting virtual resources to meet fluctuating workload demands using virtualization |
| Operations & management | – Labor-intensive, requiring IT professionals to manage physical infrastructure and operations – Longer setup times for new servers and applications – Higher risk of human error during maintenance | – Streamlined operations through service automation and centralized management consoles, reducing manual effort – Rapid deployment of new servers and applications – Reduced risk of human error through automation |
| Cost structure | – More expensive due to overhead costs of physical infrastructure, hardware, and dedicated IT staff | – More cost-effective with a utility-based model and reduced overhead from virtualization and automation |
| Security | – Physical security measures required, including individual firewall configuration for each server and manual anti-virus updates and security patches | – Centralized security management with unified firewall policies across virtual environments and automated security updates and patch management |
| Backup & Recovery | – Complex backup procedures for each physical server – Time-consuming disaster recovery process and limited recovery options | – Simplified backup management with efficient storage utilization – Rapid disaster recovery capabilities, including options like instant VM recovery |
What are the benefits of a virtual data center for your business?
A virtual data center offers numerous benefits for businesses, including the following.
1. Improved resource utilization
Traditional data centers often have a lot of unused capacity because each physical server can only run a limited number of applications or services. By running multiple VMs on each physical server, businesses can maximize resource utilization through intelligent workload distribution and dynamic resource allocation based on actual usage patterns, reducing hardware and energy costs.
2. Increased flexibility
With traditional data centers, it can be difficult and time-consuming to make changes to the environment. For example, if you need to add more capacity, you may have to purchase new hardware and install it on-site. With a virtual data center, you can enable rapid deployment of new virtual machines and applications, along with easy modification of resource allocations without hardware changes. This flexibility extends to supporting multiple operating systems and applications on the same hardware, allowing for quick adaptation to changing business requirements.
3. Increased efficiency and productivity
Virtual data centers transform workplace efficiency through streamlined workflow management and centralized controls. Employees are often tied to their desks with traditional data centers and must be in the office during specific hours. In virtual data centers, team collaboration improves through shared virtual resources that can be accessed securely from anywhere, supporting both in-office and remote work scenarios.
4. Reduced hardware costs
Virtual data centers save businesses money on physical server requirements, power consumption costs, and other expenses like data center space requirements by using quick and easy deployment without costly on-site infrastructure.
5. Automatic failover for increased reliability
With traditional data centers, ensuring that applications are always available can be difficult. A virtual data center maintains minimal downtime during maintenance or updates through automated health monitoring and issue resolution, ensuring applications are always available, with automatic failover handled by the virtual environment.
6. Improved disaster recovery
If disaster strikes and a major outage occurs, it can be difficult for traditional data centers to recover because of their reliance on physical hardware. Virtual data centers enable quick recovery in case of an outage, provisioning new VMs in minutes. Also, a disaster recovery system allows you to migrate your virtual machines to another host or server if a hardware failure occurs to ensure continuity without disruption, often in an automated fashion.
7. Reduced energy consumption and carbon footprint
Virtual data centers enable reduced energy consumption and a lower carbon footprint. They allow servers to be powered off when not in use, preventing unnecessary energy usage.
8. Scalability to grow or shrink as needed
Scaling a traditional data center to account for spikes and surges can be complicated and expensive. In contrast, it may be easier to scale your business because setting up a virtual data center is quick and straightforward, and it can handle varying workloads through instant provisioning of additional resources during peak demands and easy reduction during low-demand periods. This eliminates physical limitations on scaling capabilities, allowing businesses to grow or contract their IT infrastructure based on actual needs.
9. Centralized management for easier administration
A virtual data center provides a single location to manage all IT infrastructure, enabling efficient oversight of the entire system and making administration and management easy. This centralization extends to unified management of security policies and updates, streamlined backup and recovery operations, and simplified resource allocation and optimization.
How to migrate and implement a virtual data center
Virtual data centers are the future, and it’s estimated that 85 percent of organizations will embrace a cloud-first principle by 2025. But this leap requires some prep work. Here’s how to get your migration ready for liftoff.
1. Assess and plan
Start by evaluating and identifying possible challenges, such as security threats, compatibility problems, or operational hiccups. Once detected, come up with countermeasures such as application compatibility testing, security audits, and hardening to mitigate these threats.
With risks accounted for, it’s time to lay out the entire project scope — which workloads and apps you’re migrating, which teams need to be involved, and all the nitty-gritty execution details. Follow up with a project scope and feasible timeline, then draw a budget to set you on track.
2. Design and architect
Create an architectural design for your virtual data center with your plan in place. The design should resonate with the basic requirements and the appropriate virtualization platform needed by your organization.
How will storage be provisioned and managed in the new virtual environment? What adjustments do you need to make to networking? What kinds of robust security controls will you need to implement
3. Execute a phase migration
Prioritize which apps and workloads are mission-critical and migrate those first to minimize potential disruptions and downtime.
Depending on your specific needs, you may even consider a phased migration approach. That means gradually transitioning components and teams in waves rather than a big-bang cutover.
4. Configure and deploy virtual resources
Once migration is complete, deploy your virtual servers, storage volumes, virtual networking components, and other infrastructure resources according to your newly designed virtual data center architecture and system requirements. Ensure virtual machines, network resources, and storage systems are installed successfully. Also, double-check if they work properly with existing software.
5. Perform thorough testing and validation
With everything set, ensure you conduct regular backups and disaster recovery testing to preserve data integrity and guarantee business continuity. Continuously evaluate and improve the virtual data center infrastructure and processes to maximize work efficiency:
- Implement monitoring and analytics tools to track resource utilization, performance, and uptime.
- Schedule periodic reviews to optimize workload distribution and resource allocation.
- Automate routine tasks like provisioning, patching, and compliance checks.
Now you have five steps that will help your business successfully scale through the hurdles of data center migration from traditional data centers to virtual environments.
Understanding how these benefits can impact your business
A virtual data center can offer many benefits to your organization, including reduced hardware costs, improved collaboration, faster deployment of new applications and services, and reduced energy consumption. If you’re looking to improve your IT infrastructure, a virtual data center may be the right solution.
For 25 years, Liquid Web has helped small and mid-sized businesses understand what hosting and infrastructure solutions are right for them. More than just servers and switches, our managed hosting solutions help organizations of all sizes get the most out of their technology investments and reach their business goals. Contact us to learn more about how cloud hosting and virtual data centers might be the key to propelling your business forward.
Our promise: Information provided by experts
This article was written by Jake Fellows, a Product Operations Specialist at Liquid Web with over 10 years of IT experience. Jake has written for Liquid Web since 2018, covering cloud and virtualization topics in detail. Based on his hands-on experience with clients and various hosting technologies, he analyzed the value of virtual data centers and uncovered the hidden ways this type of data center can cut costs for businesses.
Note on the original publish date: This blog was originally published in October 2022. It has since been updated for accuracy and comprehensiveness.
