Server virtualization is becoming a critical step for most hosting providers, as cost savings play an ever more important role in business decision-making. Microsoft offers a suite of products such as Windows Server 2008 Hyper-V and Microsoft System Center that make it easier than ever for hosting providers to take advantage of the cost savings associated with virtualization. Hyper-V enables the consolidation of multiple server roles as separate virtual machines running on a single physical machine, while efficiently running multiple different operating systems -- Windows, Linux and others -- synchronized on a single server. To simplify the management of a hosting provider's entire infrastructure, Microsoft System Center is a suite of management systems that lets a company manage both physical and virtual assets for clients and servers, including multiple hypervisors, all with the same platform.

Microsoft has seen broad adoption of its virtualization solutions and management tools among worldwide hosting providers. Ikoula, Layered Technologies Inc., MaximumASP, NetBenefit Ltd., RackForce Networks Inc., Revera Ltd. and Santa Barbara Web Hosting Inc. are a small sample of hosting providers that have adopted and deployed Windows Server 2008 Hyper-V and Microsoft System Center.

"We're enabling hosting providers to be successful in the new era of software plus services with a reliable platform and broad range of services designed to deliver a compelling, next-generation Web experience," said Mike Neil, general manager of virtualization in the Server and Tools Business at Microsoft Corp. "Nearly 200 of the largest hosting providers have adopted Windows Server 2008, many with Hyper-V in production offering services to end customers. Hosting providers have access to ready-to-use technical and marketing content on Hyper-V in the Microsoft Hosting Deployment Accelerator DVD."

Revera, an infrastructure specialist company headquartered in Auckland, New Zealand, provides its business customers with high-integrity computing infrastructure and services. Revera has three datacenters in New Zealand and one in Melbourne, Australia, which have the capacity to support 5,000 physical servers and 67,000 virtual servers. Revera representatives see the arrival of the Windows Server 2008 Hyper-V virtualization technology and Microsoft System Center Virtual Machine Manager as simplifying server management and providing a cost-effective option for most customers.

"There is a gap in the market for doing server virtualization well but also cost-effectively. Hyper-V is filling this gap," said Roger Cockayne, group managing director and co-founder of Revera. "We are converting 95 percent of our internal servers. There are several factors in pricing, but in many cases virtual servers have a lower price yet provide increased redundancy and higher availability. Our service-level agreements for virtual servers are normally higher than for the typical physical server that we host."

Achieving Cost Savings

Microsoft continues to make partners a top priority in the world of software plus services through programs such as the Microsoft Services Provider License Agreement and the Microsoft Communications Sector Hosting Solutions Competency within the Microsoft Partner Program. The license agreement enables service providers and independent software vendors with a hosted offering to license Microsoft products on a monthly basis to provide services, limiting their upfront capital investment and synchronizing their cost structure with their revenue stream. This week, Microsoft announced several updates to the license agreement. New stock-keeping units (SKUs) for select products will enable partners to license three years' use of products at a 12 percent price advantage from the monthly price, with no minimum quantity required. In response to partner demand, Microsoft also added two Windows Server Standard 2008 Anonymous SKUs to the SPLA. With the license agreement, Microsoft is uniquely positioned to help its hosting partners and their customers achieve cost savings and greater efficiencies.

Microsoft is committed to understanding its partners' businesses, and providing them with the right tools and resources to address the pressures and challenges they face. At Microsoft's Worldwide Partner Conference in July, hosting partners can look forward to additional announcements on how Microsoft is helping them succeed as the industry continues to evolve.