To Virtualize or Not to Virtualize,
That is the Question!
by Mike Walter, Xcentric  (October 20, 2008) 

The hot topic in technology these days is virtualization, but there are several different types and meanings.  What does all this virtualization hype mean to your CPA firm and how will it affect you?  Virtualization is a broad topic, so let's review only a few of the primary types and their possible impact on your firm.

The most common virtualization technologies are:

1.Server Virtualization: a mature technology that continues to gain momentum.  A single host server can run multiple other servers on the same hardware without conflict.  The host machine may or may not have its own operating system installed (Figure 1).

2. Application Virtualization: technology designed to reduce application conflicts and improve manageability (figure 2).
        a. Some sources consider Citrix as a form of application virtualization since it allows fully functional applications to be delivered to users almost anywhere.  Citrix is more commonly referred to as Presentation Virtualization.
       b. Software streaming is the most recent and most popular method, which allows applications to run without being physically installed on the host operating system by being "streamed" to the workstation or server.  Similar to how video streaming works on the Internet, an app is delivered to a user over a network on demand.  The workstation treats the application as if it was installed locally.

3. Desktop virtualization: also known as VDI, or Virtual Desktop Infrastructure, runs desktop operating systems inside virtual machines.  Users access the desktops remotely from a PC or thin client.  Users benefit from the ability to remotely access their familiar corporate desktop from any location.

4. Storage virtualization: allows different types of storage devices, possibly in different locations, to be pooled together into what appears as a single storage device.

One of the strongest benefits of virtualization is business continuity and disaster recovery.  Virtualization allows for easier migrations both with systems and software.  Other possible benefits of virtualization include reduced downtime for maintenance, whether planned or unplanned, on both physical systems and software, lower capital expense, and more efficient use of hardware resources.  Most of the challenges stem from having a more intricate IT infrastructure that requires more elaborate IT management. 

Virtualization adds complexity and new challenges like support issues, configuration, licensing assurance, backups, and/or security.  One thing is for sure, virtualization technology is not plug-and-play.  If implemented properly, virtualization will greatly enhance your organization's business agility.  The key to success is gaining a complete understanding of the environment, the need, and the goals, and then matching a virtualization solution to solve those issues.

Virtualization is definitely something to consider fro a CPA firm.  Currently, server virtualization is the most prevalent type.  It will be a few more years before the other types are quite as popular in the accounting industry.  Application virtualization does not play well with most of the accounting applications as they tend to be more difficult to virtualize and deliver.  Storage virtualization will gain popularity as data storage continues to increase.  Desktop virtualization has a few hurdles to overcome, but is gaining traction quickly in the market.

Another important note is that is is possible for almost any of the virtualization technologies to cooperate well with Citrix, especially because Citrix is offering unique solutions for server, application and desktop virtualization right now like, XenApp, XenDesktop, and XenServer.  Virtualization is not going away, and it's only becoming more and more established.  If you weren't familiar with any of the virtualization types mentioned above, you'll certainly hear more about them in the future.

If you have any questions about the different virtualization technologies and how they may help your organization, please contact Xcentric at info@xcentric.com or 678.297.0066.

Mike Walter is the Director of Professional Services for Xcentric, LLC, a technology consulting group that specializes in network technology consulting. hosting, and implementation for accounting firms.  Xcentric helps CPA's leverage and use technology for strategic and operational advantage.  Mike can be reached at 678.297.0066 or mwalter@xcentric.com.

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