This document discusses how growth in internet users, devices, and data is driving new requirements for data centers. It notes that virtualization and hosting applications are driving the majority of new server purchases. Many new servers will be virtualized and used in environments where power and space are limited. This creates opportunities to improve efficiency and reduce excess IT spending through solutions that simplify management of virtualized infrastructure. The document also outlines challenges around security, efficiency, manageability and lock-in that cloud and virtualized computing aim to address.