31 Dec 2008

Server virtualisation 'could help beat credit crunch'

Hosted IT services could become increasingly popular as firms seek to manage their technology in the economic downturn, a report has suggested.

According to silicon.com, businesses are still planning to invest in IT in 2009, but managing costs and effective spending will be key priorities in any decisions.

This means the uptake of "wallet-friendly" technologies such as server virtualisation and software-as-a-service could rise as firms seek to improve the efficiency of their operations.

Virtual servers allow more power to be squeezed out of fewer processors, enabling companies to save on costs and giving "the best bang for your buck".

Adopting server virtualisation could therefore become "the way out of the credit crunch rather than the drain it has become", the report suggests.

It claimed that outsourcing processes such as managing the supply chain would also help free up vital resources for most firms, allowing more investment elsewhere.

According to Information Week, server virtualisation can not only help to reduce costs but also offers improved business continuity.