In reply to Jeff.

Jeff, thanks for joining the conversation. The admin cost for the physical servers, not the virtual servers. One could argue that the cost of managing the virtual servers would be the same on both sides. As to the racks, cooling, etc., cooling is contained in the cost of power via the PUE. For the rest, yes those would be incremental cost ($2K for a rack?). I think I have enough wiggle room to cover all of them and still come out ahead. There isn't enough savings to build a data center, but if you are on-premises, you already have one of those :-). I do have all the software licenses (and support) included for both the blades and rack servers - HX, VMware, and Red Hat for the OS. Am I missing something else?