Server virtualization is the ability to run multiple virtual machines on a single IBM System x server. The System x server runs Oracle VM server which enables you to install multiple operating systems that are able to run simultaneously and independently in their own secure environment, with minimal reduction in performance. Each virtual machine has its own virtual CPU, network interfaces, storage and operating system.

Running Oracle VM with IBM System x servers allow the consolidation of multiple under utilized servers running single applications. Many applications have to run on their own physical server for different reasons; the application may be specific to one operating system, may have to run in 32bit, may not be compatible with other applications, or may simply not be run with other production applications for security reasons.

Consolidating multiple physical servers with IBM System x servers reduces the number of servers in a datacenter and therefore:
• Decreases the power and cooling costs,
• Saves datacenter space,
• Decreases the networking and SAN interconnectivity,
• Decreases the cost of physical server maintenance.

IBM System x servers benefit from the Intel VT and AMD-V technology to run fully virtualized hosts. Physical servers running Microsoft Windows and older versions of Linux (for example Red Hat EL 3) can be consolidated into fully virtualized virtual machines. Thanks to IBM X-Architecture TM and Intel and AMD multi-core technology, the IBM System x servers are dramatically more powerful than the previous generation of servers. The processing power provided now is such that a server can easily handle multiple virtual machines running individual applications that required a whole physical server a couple of years ago.

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