How does virtualization contribute to cost savings for data centers?

Virtualization contributes to cost savings for data centers primarily by maximizing the use of existing hardware resources. This technology allows multiple virtual machines to run on a single physical server, which optimizes the utilization of computing power, memory, and storage. By consolidating workloads onto fewer physical servers, organizations can reduce hardware costs, lower energy consumption, and decrease the physical footprint of their infrastructure. Additionally, this efficiency reduces the need for extensive physical resources, such as cooling and power, leading to further operational cost reductions.

In contrast, increasing the number of physical servers would typically result in higher capital and operational expenses, rather than savings. Eliminating all software applications is not a viable or sensible strategy, as it would hinder the functioning and productivity of the data center. Lowering the quality of infrastructure would also not lead to cost savings in a sustainable manner; instead, it could compromise reliability and performance, leading to increased costs in the long run due to potential outages or maintenance needs. Thus, maximizing existing resources through virtualization stands out as the most effective approach for cost efficiency in data centers.