Virtual PC and Virtual Server have gained significant adoption in development and test environments, and are important stepping stones to realising Microsoft's vision of self-managing dynamic systems. Virtualisation technology is gaining a foothold in the data centre, enabling more efficient utilisation of hardware and helping IT react more quickly to changing demands. This session introduces the Microsoft Virtual Server technology, its capabilities, how it is being deployed today and the benefits and challenges customers are seeing. We look at how Microsoft will evolve the technology with the introduction of Hypervisor in codename Longhorn Server. We'll look at the steps Microsoft is taking to help.