Server virtualization, in a nutshell, is when several different servers are combined onto one machine. Combining servers and clustering them together is great for our users; it makes the network safer and more reliable. It also saves us money. Lots of money. Each high school used to have 14 servers. We have reduced that number to eight, and by next summer there will only be four. Eliminating 10 servers at each building saves us more than $50,000 annually just in electricity costs. On top of that, it costs less money to cool the server rooms and it will cost us less money in the future when we need to replace 4 servers instead of 14.
We began virtualizing servers to provide a better experience for our students and our staff members. We didn't realize how much money we would save each year in electricity costs until our energy consultant sat down with us and worked on the numbers.
For more information on virtualization please visit Microsoft's website: http://www.microsoft.com/virtualization/en/us/products-server.aspx