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In an environment of increasing pressure on corporate IT budgets, AMD has presented a clear strategy: drastically reduce virtualization costs with its EPYC™ processors, without sacrificing performance. With the recent changes to the VMware licensing model following its acquisition by Broadcom, which now charges per core, many organizations are forced to rethink their infrastructure strategies.
According to AMD estimates, up to 83% of the total cost of ownership (TCO) of a server can be attributed to virtualization licenses, a figure that can increase further with other software costs. In light of this situation, the company suggests upgrading hardware as a solution to maximize return on investment.
EPYC: More Cores, Lower Consumption, and Fewer Licenses
The latest-generation AMD EPYC processors stand out for their high core density, energy efficiency, and compatibility with high-performance memory and I/O interfaces. This allows for consolidating more workloads per server, drastically reducing the need to acquire additional licenses.
The result? Fewer servers, lower energy consumption, reduced rack space, and, most importantly, significant containment of spending on licenses. In an illustrative case, AMD notes that the same performance can be achieved from 100 Intel Xeon 6252 servers (4,800 cores) with just 29 servers equipped with EPYC 9375F (1,856 cores), achieving:
- Up to 61% savings in licensing costs over 5 years
- Up to 50% savings in energy consumption
- An estimated 61% reduction in TCO over 5 years
Real Cases: Measurable Results
Companies like Emirates NBD have experienced tangible improvements after adopting AMD EPYC processors: a 42% increase in performance and a 20% reduction in virtualization licenses.
Furthermore, large data center operators like Google, Microsoft, and Meta also rely on EPYC to maximize performance without increasing operational costs.
Enterprise-Level Compatibility and Security
AMD assures that its platform is fully integrated with the leading virtualization ecosystems on the market: VMware, Nutanix, and Red Hat, and leverages technologies like AMD Infinity Guard to enhance workload security. It remains to be seen if Proxmox will be on the list, and the likely answer is yes.
Additionally, thanks to its x86 architecture and design optimized for hybrid environments, EPYC processors easily adapt to both on-premise and cloud deployments.
Modernizing Without Overhead: A Priority
With the increasing demands of workloads, particularly those related to artificial intelligence, upgrading infrastructure is no longer just an improvement option but a strategic necessity. AMD EPYC emerges as a solution capable of delivering high performance, energy efficiency, and cost savings on licenses, allowing IT teams to modernize their systems without compromising the budget.
Source: AMD