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Report: Service providers use virtualization to expand data centers, increase revenue

In a recent report, market analyst firm Infonetics Research interviewed representatives from 19 major telecoms and other service providers and found that the majority of them were planning to implement virtualization technologies to expand their data centers.

"Service providers are once again in expansion mode, but unlike in the late 1990s when the bandwidth rush was on, the focus this go-around is a quest for revenue," said analyst Sam Barnett. "Service providers seeking to bolster their financial picture and gain a piece of the cloud service revenue pie are leveraging a captive customer base and expanding data center offerings to include virtualization technologies and even new networking facilities like fiber channel over Ethernet."

Using virtualization, these organizations can keep up with the growing demands of cloud services. As a result, running applications on a fully virtualized environment is one of the top strategic initiatives for many service providers, Infonetics noted.

By utilizing virtualization technologies, companies can use space more efficiently while lowering the number of physical servers, resulting in decreased maintenance costs. Additionally, virtualization allows businesses to make changes to one virtual server without affecting any others.

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