E-Business
How Virtualization Can Reduce Organisation’s Energy Costs
Virtualization can enable cost savings for organizations in multiple ways. This article explores those instances and points out how the overall power savings from virtualization can boost the environmental credentials of the private and public institutions that adopt it.
Each year, organizations devote a substantial amount of their budget to providing power for their operations. Energy costs are on the rise, and so is its consumption. With companies and public agencies running on an increasing number of devices, costs are expected to trend upward still.
The Nigerian context brings an extra dimension to the situation with energy costs in the country. For most businesses, power from the public grid isn’t enough. They often have to augment it with expensive alternatives. One estimate puts the total annual spend on power by businesses at ₦5 trillion.
Given this situation, it’s easy to see why businesses are on the lookout for legitimate ways to cut their power costs. Virtualization technology provides them with an effective way to do just that.
What Is Virtualization?
Virtualization refers to the creation of a virtual version of an actual thing, including Operating Systems, servers, storage devices, and other computer platforms and network resources.
The virtual versions sit atop the actual component and run just like them. Virtualization is done by deploying software that divides the physical resource into multiple virtual instances.
Here’s an example. Given a single physical server, multiple virtual servers could be created to run atop that server, and work just like it. Each of those virtual servers will perform the same functions that a single physical server would.
The same sort of thing happens with virtual Operating Systems. If you have virtualization software on your computer, you could create multiple Operating Systems—called Virtual Machines –that would run alongside the single Operating System that the computer previously had.
This ability to run several instances of a single component is at the core of the cost savings that virtualization can guarantee.
In the following sections, we explore some of the ways by which virtualization achieves lower costs for the organizations that adopt it.
Virtualization and Server Consolidation
Datacenters consume a lot of electricity. One widely cited report from 2018 (contained in the journal Science) suggests that they take up about 205 terawatt-hours of electricity annually—that’s about 1% of electricity consumed worldwide each year.
It follows that thanks to the energy costs associated with them, datacenters cost a lot to maintain.
A greater part of that expense–40% in one report–comes from running servers. Considering that many servers only have a single application running on them per time, it’s clear that a lot of spending is going into keeping those applications up. It also means that these servers are sitting idle most of the time, adding even more expense for little or no workloads.
With virtualization, these costs can be cut significantly. Virtualization enables the consolidation of the number of servers in a data center, enabling businesses to run several applications and Operating System workloads on a single server. In many cases, a company could have ten workloads running on one server; but it’s possible to have several times that number on one server.
This consolidation translates to a reduction in the number of servers needed, and a substantial increase in the utilization of server capacity. Capacity use could increase from about 15% (which is typical) to as much as 80%. Energy savings may increase by up to 80%, and energy costs are cut by a significant amount.
Scalability and Tailoring Resources to Current Needs
Energy costs can increase or decrease depending on the demand placed on the resources that consume power. These variations may occur over short periods, such as hours within a day. They could also be longer-term, such as the growth of a company.
If an organization experiences any of these instances, it may have to spend a lot on acquiring new capabilities. Its response in any of these cases may also be slowed down due to hardware handling issues and associated costs.
Virtualization can enable organizations to scale resources quickly and meet growing demand. Whether the demand on resources fluctuates over a short period, or resources have to be matched to company growth, creating virtual versions of those resources can take care of those needs.
Often, businesses may maintain ‘excess capacity’ just so they can utilize that capacity when the occasion calls for it. This happens when they are principally dependent on hardware or other actual components, and less on virtual versions of them. With virtualization, they can power on or power off capacity, and save the cost of dormant resources.
Virtualization’s Impact on the Environment
By reducing the amount of energy that has to be consumed per device, virtualization shrinks the potential impact that their use could have on the environment.
By one estimate, each server that is virtualized saves 7,000kWh of electricity and four tons of carbon dioxide emission per year. It cuts down the amount of space that’s required in a data center, thus reducing both the cost of managing it and its possible impact on the environment.
Another way in which virtualization helps mitigate the environmental impact of technology is its cutting down on hardware that needs to be decommissioned at the end of its lifespan. Electronic waste is known to be a major environmental hazard, and the failure to properly dispose of them could mean that they become a physical pollutant. If companies opt for virtualization instead of acquiring new hardware, they could drive down the number of hardware that will eventually be decommissioned.
Layer3 Provides You with the Benefits of Virtualization
If you would like to enjoy the many benefits of virtualization, you can do so with the virtualization products available from Layer3.
Our solutions can help you reduce your hardware and operating costs by up to 50%, and cut down the time it takes to provision new servers by up to 70%. We also enable you to automate your virtual infrastructure, avoiding planned downtimes and eliminating repetitive configuration and maintenance tasks.
Let’s provide you with a virtualization solution that meets your needs. To get in touch with us, click here.
Human Rights Writers Association of Nigeria (HURIWA) has opposed a bill seeking to compel major global social media companies to establish physical offices in Nigeria.
The rights advocacy group urged the National Assembly to discard the proposed legislation, warning that it could become a tool for censorship and undermine citizens’ constitutional right to freedom of expression, despite being presented as a measure to strengthen Nigeria’s digital economy and improve corporate accountability.
The position was contained in a presentation submitted yesterday by Emmanuel Onwubiko, national coordinator, HURIWA, to the chairman of the Senate Committee on ICT and Cyber Security.
The bill, sponsored by Senator Ned Munir Nwoko, has already passed second reading in the Senate and is before the committee for further legislative consideration.
HURIWA said it carefully reviewed the proposed legislation and concluded that compelling global technology companies to establish offices in Nigeria was unnecessary and potentially counterproductive.
The organisation argued that while the firms generate substantial revenue from Nigeria’s vast digital market, they already engage Nigerians through existing structures, including paying eligible content creators, working with local technology professionals and participating in legal proceedings whenever required.
According to the group, appointing local representatives where necessary would adequately address concerns about engagement with regulators and users without forcing the companies to maintain physical offices.
It also dismissed claims that mandatory country offices would significantly improve consumer complaint resolution, technology transfer or employment generation.
HURIWA maintained that the platforms already have effective feedback mechanisms for resolving users’ complaints and routinely appear before Nigerian courts through their representatives whenever litigation arises.
The group, however, said its greatest concern was the potential for the proposed law to be used as an instrument for restricting freedom of expression.
It argued that establishing local offices could expose global social media companies to pressure from government authorities to remove online content considered critical of those in power.
According to the rights group, the presence of social media companies in Nigeria could become an avenue for authorities to pressure them into abandoning internationally recognised digital rights standards in favour of politically motivated content moderation.
It recalled previous attempts to regulate social media in Nigeria that generated widespread concerns over possible restrictions on free speech, stressing that any legislation affecting the digital space must contain clear safeguards against abuse.
The organisation warned that the proposed law should never become “a backdoor mechanism for government surveillance, arbitrary content removal or political censorship.
Nigeria has emerged as one of Africa’s most regulated online gambling markets, even as illegal operators continue to dominate the continent, according to a new report by Gaming Compliance International (GCI).
The report, the first comprehensive assessment of online gambling across all 54 African countries, showed that Africa’s online gambling Gross Gaming Revenue (GGR) reached $23 billion in 2025.
However, only $5.2 billion (23 per cent) was generated by licensed operators, while $17.8 billion (77 per cent) remained in the unregulated market.
In West Africa, total online gambling revenue rose to $4.8 billion in 2025 from $4.3 billion in 2024. Of the 2025 figure, regulated operators accounted for $1.5 billion (31 per cent), while $3.3 billion (69 per cent) flowed to unlicensed platforms, highlighting the region’s persistent enforcement challenges.
Nigeria stood out as the region’s strongest performer, recording the lowest unregulated market share at 56 per cent, compared with the West African average of 69 per cent and the African average of 77 per cent.
The study also found that online gambling participation across Africa increased from 198 million people (13 per cent of the population) in 2024 to 215 million (14 per cent) in 2025.
Despite this growth, GCI estimated that illegal operators deprived African governments of about $3.55 billion in tax revenue in 2025. The number of unlicensed gambling platforms targeting African consumers also rose to 4,129, up from 3,644 in 2024.
Commenting on the findings, Matt Holt, chief executive officer, GCI, said the report provides regulators with the first continent-wide benchmark for strengthening oversight and consumer protection.
Ismail Vali, president, GCI, urged governments to develop competitive and well-regulated markets that encourage consumers to patronise licensed operators, boost public revenue and attract greater investment.
Online gambling in Nigeria is regulated by the Nation Lottery Regulatory Commission.
At the height of the Northern Hemisphere tourist season, demand for communications and mobile Internet services rises sharply. Kaspersky’s security experts have uncovered scams that target anyone purchasing mobile connections or SIM cards worldwide.
Fraudsters create counterfeit websites that look like the portals of major regional and international telecom providers to trick users into revealing their phone numbers, personal details or banking information.
Kaspersky is sharing several examples of these fake login pages that mimic legitimate telecom operator sites and giving recommendations on how not to be deceived.
In the first case, scammers exploit the brand name of an international telecommunications company operating services in Asia, Africa and Europe. Fake authentication pages encourage users to put in their phone number and credentials.
While the first example shows the different design, the second scam site closely mimics the original log in page, making it hard for users to tell the difference and spot a fake. Entering authentication or payment data on fraudulent web sites may result in money or data loss and become a reason for more frequent spam and fraudulent calls.
Another example is a scam page which poses as another international communications company, working in North Africa, the Middle East and Southeast Asia. In this scheme scammers encourage users to top up their mobile data/Internet plans by entering their personal information and bank cards details.
Kaspersky experts have also identified a scam when cyber criminals suggest users enter their personal data to check and pay a bill inquiry. Such scam schemes are usually aimed at gaining victims’ personal data for further fraud or account hacking and stealing money.
“Because of the active use of AI, scammers can now create fake pages with ever increasing accuracy and speed, targeting the most popular user interest areas. We constantly see scams revolving around sports events, music concerts, seasonal sales and holidays. Unfortunately, the telecoms industry is no exception.
To keep your data and money safe, be vigilant when purchasing mobile or Internet plans online. Using an eSIM – purchased through an official app – is one way to avoid fake telecom sites, as it eliminates the need to enter personal details on questionable web pages.
If you’re unsure about a site’s legitimacy, search for the brand name directly in a search engine and enable a security solution that blocks phishing links for you,” comments Tatyana Kulikova, cybersecurity expert at Kaspersky.
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