With virtualization and hosted services, people are just not buying servers as much as they did in the past.

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Instead of one PC client hosted on one server, virtualization software allows companies to host many PCs on a single server, cutting total IT energy costs.

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Today, virtualization allows servers to be converted to software "images" that can be consolidated and hosted on a single physical server, increasing a data center's efficiency by about 25%, Kerravala estimates.

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