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The advent of high horse powered servers highlighted a  fundamental  problem  with  the  one-application-per-server model: it was not effcient. Dedicating a modern server  to a  single application  is  likely  to  result  in that server being severely underutilized - in fact, many businesses fnd that their servers are running at anywhere between 5% and 25% of total capacity and, accordingly, a  substantial amount of  computing  resources are unused. Virtualization  enables  those  previously  untapped  resources  to be put  to use. Because a physical server’s resources can be shared between multiple VMs, servers can be made to utilize much more of their capacity: a  server  that was  running  at  only10%  capacity when non-virtualized may run at 85% capacity when virtualized. Additionally, virtualization also enables SMBs  to simplify their infrastructures. Disparate legacy applications and new applications that require different operating systems can all be run on the same physical hardware. Combined, these factors provide businesses with a broad and substantial set of benefts including:

• Reduced energy costs. The consolidation of workloads will mean  that  there are a reduced number of servers which need to be powered. This can lead to cost reductions of between $300 and $600 per year for each server that  is  removed  from  the  infrastructure.  In  the case of data centers, the reductions will be in the region of $600 to $1200 per year when cooling costs are included.
   
• Reduced real estate costs. Because virtualization enables the installed server base to be reduced, rack/foor space requirements will also be reduced.
   
• Reduced management  costs. Virtualization  enables businesses to radically overhaul and streamline their IT operations. Time  that previously had  to be devoted  to routine tasks such as provisioning and maintenance can be redirected to other areas, enabling IT staff to concentrate on core business functions.
   
• Improved agility and responsiveness. Deploying a physical server takes time: the server must be order, wired into the network, and necessary software installed and confgured. Bringing a virtual server online is, however, a much easier and speedier process and one which can be accomplished in a matter of minutes, enabling IT to respond to business needs much more rapidly.
   
• Improved availability and business continuity. Because VMs can be brought online in a matter of moments and migrated between physical servers without downtime, virtualization can practically eliminate the need for maintenance windows and unscheduled downtime, ensuring high availability  for  the key applications which drive a business.

While  server  consolidation  is  often  thought  of  as  the main driver and beneft of virtualization, enhanced availability is nonetheless equally as important. According to The Costs of Downtime: North American Medium Businesses 20061, a study by  research group  Informatics, mid-market enterprises experience an average of 140 hours of unscheduled downtime each year at a cost of $867,000 (or 1% of their revenue).

In short, virtualization enables businesses  to do more with less.