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Virtualization is a technique for simulating the software and the hardware upon which other software runs. Organizations adopting virtualization technologies can operate their information systems more efficiently, reduce their energy, operations and maintenance costs, and spend less on hardware and space for hardware. Federal organizations, in particular, are alert to the need to reduce the costs of operating data centers and to manage their information systems costs effectively. In a Presidential Memorandum on Disposing of Unneeded Federal Real Estate, issued in June 2010, executive departments and agencies were advised to "Accelerate efforts to identify and eliminate excess properties" and "To make better use of remaining real property assets as measured by utilization and occupancy rates, annual operating cost, energy efficiency, and sustainability."
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