Honestly, when you're Data Center is Virtualized, its time to hand it over to some really professional shops instead of handling the shoddy IT department which you probably are making a mess of.
Anyways it won't come as a surprise to me if VMware itself starts offering its data centers for data center hosting and provisioning. Or partner with Google and run the data centers of (mainly) SMBs in your park.
This post makes interesting points on the developments.
Provisioning. Image-based deployment of virtual machines is much simpler and less error-prone than an installation process requiring many steps in the configuration. Virtuozzo, with extremely compact images, makes provisioning a snap.
Density. Most existing applications were not designed for SaaS and only support a single tenant (user hierarchy) per environment. Virtualization allows multiple instances of such applications to run on the same machine, greatly improving efficiency without the need to redesign the application. The unique architecture of Virtuozzo allows 25-50 instances per server, making it economically very efficient to run "legacy" applications in SaaS mode.
Given that you will be resilient to the market developments, you will be losing your shop and resources to the closest and better performing vendor. Read the benefits and consider SaaS (with or without the Virtualization factor)
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