In simple terms, virtualization means that we will employ one big server instead of several smaller ones. The current ratio is about 30 to 1, meaning 1 big server will do the work of 30 smaller ones. The big server is able to be divided up “virtually” so that it can appear and act the same as several individual servers. Cost savings are realized through economies of scale and efficiency from using fewer pieces of equipment.

1. Reduced IT costs: The upfront cost per virtual server is about 35% of a comparable standalone server.

2. Reduced Power Consumption: Power and cooling requirements per virtual server are about 10% of those for a physical server.

3. Increase Reliability:  Virtual Servers run a on a cluster of virtual hosts.  If one of the hosts fails the server will automaticlly move to a funtioning host.

4. Improved Security: Both physical and network security through monitoring. This increases reliability of the system and protects intuitional data.