In the past applications were run on their own dedicated server hardware. More applications meant more servers. Virtualisation reduces server sprawl, as IT departments can consolidate several applications on a single box. Virtualisation also has a role in Green IT: it can improve the efficiency of servers and lower the amount of electricity consumed.

But, virtualisation comes at a cost. In this podcast, Cliff Saran speaks to Gartner vice president, Alexa Bona, about the licensing costs that can erode any financial savings.