It's nearly impossible to conduct business today without embracing some form of technology. And as the world grows increasingly dependent on digital solutions, the need for integrating even more IT-based initiatives into small business will arise. The latest important technology for small businesses is virtualization.

What is Virtualization?
According to the most universally-accepted definition, virtualization is the ability of a single machine to run multiple operating systems at the same time by utilizing compartments called virtual machines. Originally, software engineers used virtualization to test products on various operating systems. Now, virtualization is also used for networking, data storage, and software development.

Of the handful of virtualization technologies available to small business, server virtualization is the most important. Server virtualization is the practice of running multiple servers on a single machine. These consolidated "virtual" servers may serve a small business network or a number of independent organizations; either way, there are numerous benefits to utilizing servers at their full capacity.

Advantages
Cost reduction is the greatest benefit of virtualization for small businesses. Because virtualization uses fewer servers, firms that optimize typically enjoy reduced downtime, maintenance, and energy costs. Virtualization also allows the use of multiple operating systems, granting increased flexibility. By virtualizing servers you can prevent changes in one application from impacting other applications. Finally, virtualized servers are considered "green" technology because of their lower carbon dioxide emissions than traditional server farms.

Disadvantages
The high initial cost of server virtualization is an immediate deterrent for many small businesses. New security concerns can also be challenging. In order to optimize space, one server could maintain any number of virtual servers from different organizations or departments, which raises many questions with respect to information security.

Additionally, with any increased reliance on new technology comes the potential for more maintenance and upgrades. However, in a pay-as-you-go model in which you subscribe for server space, these additional costs should be the responsibility of the provider.

With or Without
Let's say, as a small business, in addition to hosting and maintaining your own web site, you also operate a small business network or company intranet. Because the software for the intranet and website were incompatible, your organization purchased a number of expensive servers. Now, while these servers provide the capacity you need, they are vastly under-utilized. Even if they operate at near-full capacity during peak-hours, during off-peak hours, those power-hungry servers are sitting idle running up your energy bill. At this point, you're needlessly wasting energy and certainly not getting your money's worth. Later, you find yourself putting more money into the servers for unscheduled maintenance and updates.

Now, let's say, instead of purchasing multiple servers, you've opted to virtualize. This means you need one server. You pay more upfront for the virtualization technology, but immediately experience a reduction in energy costs and maintenance. Over time, your initial investment will itself back, especially since as energy costs rise, your firm saves money.

In addition to being environmentally-friendly, technologies like virtualization are enabling small businesses to succeed. By reducing operating costs and providing a platform for commerce, virtualization is a key component in the future of business, big and small alike.

~Richard McNeal, 2009