Quoting ZDNet

Virtualization will be a key infrastructure priority for CIOs looking to reduce costs and increase energy efficiency over the next 12 months.

Three-quarters of silicon.com's 12-strong CIO Jury IT user panel said virtualization--the simultaneous running of several operating systems on a single desktop or server--is one of their current investment priorities.

Peter Pedersen, CTO at Rank Group, said: "Virtualization is very much a priority to reduce cost, to increase agility, reduce space requirement and to reduce 'carbon footprint' through reduction in power utilization for both equipment and cooling."

Reducing the number of physical servers is also saving on management and facility costs for Ben Booth, global CTO at polling and market research group Ipsos.

He said: "It's good for business as we can cut costs, and good for the environment as overall it helps us reduce our carbon footprint. Of course, major applications still require multiple servers but for the smaller systems it is proving to be a very effective technology."

Cost savings and energy efficiency aren't the only benefits of the virtualization approach. Paul Hopkins, IT director at Newcastle University, said: "There are lots of different and often complimentary reasons, including capital cost savings, revenue savings, green issues, resilience, performance, and capacity management."

Graham Yellowley, director of technology services at investment bank Mitsubishi UFJ Securities International, added: "We are looking to leverage virtualization to maximize our computing efficiency, reduce our data centre space, power and cooling requirements, and to provide an effective disaster recovery facility at a cost lower than purchasing multiple individual machines. Combining multiple grid computing farms and adding virtualization is also on the agenda."

One company already well down the virtualization path is insurance group Markel International. Steve Fountain, IT director at Markel International, said: "We actually embarked on this some three years ago and have already 'virtualized' a very high proportion of our Windows servers onto a very much smaller number of 'significant' IBM Intel servers. Very successful it has been too, so much so that VMWare is now our stated 'preferred' platform of choice."

But not everyone is yet convinced by the arguments for virtualization. Mark Beattie, head of IT at LondonWaste, said: "We have so many different systems which need to interact, I just don't have the confidence that it'd all hang together if we tried virtualization."

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