Server virtualization is becoming increasingly popular as a strategy to reduce costs and streamline operations, and is often seen as a relatively simple way to reduce personnel requirements, save money on software licenses, and increase reliability. In reality, however, virtualization raises technical and resource issues that require careful planning, as well as coordination with business users. Ideally, virtualization is only one component of a broader resource optimization strategy, rather than an end in itself. This discussion will examine some of the common misperceptions surrounding server virtualization, and outline the basic elements of an optimized approach to infrastructure management.