Virtualization: Real Trouble for Servers?

Technology to help companies make more efficient use of computers is crimping demand for some machines, forcing strategy shifts for IT giants
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For some of the biggest technology companies, the trend toward piling more software onto fewer computers has become a powerful engine of wealth creation.

EMC (EMC) subsidiary VMware, which specializes in software that helps companies make more efficient use of computers, has said that an initial public offering could generate $100 million. Hewlett-Packard (HPQ) reported a 13% increase in second-quarter revenue May 16, thanks in part to sales of higher-priced machines that pack more computing power onto less hardware. At a conference in Los Angeles on May 15, Microsoft (MSFT) Chairman Bill Gates talked up efficiency-friendly features in a planned operating system.