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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While virtualization allows users to pool data into less but stronger servers, it also benefits from having the data in a third location.

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Virtualization allows each of those machines to host "virtual" servers that are capable of both online banking and bill processing.

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