Despite just a couple of year's experience with x86 server virtualization, IT managers have virtualized an average of almost one-quarter of their servers. And cost-cutting is no longer the sole motivation — business continuity and server manageability now top the list of motivations for virtualizing. As a result, vendor strategists will see buyers choosing more capable and expensive servers, although they remain skeptical about blade servers. Vendor strategists must prioritize building inexpensive new business continuity capabilities for small and medium-size businesses (SMBs) built on virtualization.