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Virtualization allows software to catch up with hardware performance improvements while achieving a 10x boost in IT labor productivity. That virtualization can be used to consolidate servers is well understood. However, software cannot keep up with the rapid advances in hardware performance without virtualization, and that will drive penetration higher than expected. In particular, rapidly increasing mainstream server capacity in terms of cores per socket is likely to force customers to virtualize more applications or risk dramatically underutilizing servers again.
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