http://considerthesourceblog.typepad.com/consider_the_source/2008/03/server-consolid.html
Service providers are increasingly touting “server consolidation” as a sure way to cut costs in IT sourcing contracts. Providers typically offer guaranteed price decreases based on a commitment to reduce the total number of client servers. However, guaranteed decrease in price shouldn’t drive hasty contract signing.
The two primary alternatives include: consolidation guarantees within a sourcing contract via contractual price reductions, and project by project consolidation efforts.
Check out this post which is talking about things to consider in server consolidation, it raises some good points.
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