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Microsoft has released for download Hyper-V version of Windows Server 2008, this component will allow IT users to run different virtual machines on one physical machine without the need of running a full Host OS.
With server virtulization you can cosolidate work loads of underutilized machines onto smaller number of servers reducing energy and hardware costs and maximizing performance of all your servers.
Other beneifts with virtualization is the ability to take snapshots of a running machine wich can then be easily revert to a previous state improving the overall recoverability your Virtual Machines. The ability to easily test upgrades and service packs prior to upgrading the production machines without the need of purchasing new hardware. Migrating Virtual MAchines from one physical host to another with minimal downtime.
Alan Stevens from ZdnetÂ has written an excellent article on the topic of Hyper-Vï¿½