Bangalore: Rising cost triggered by declining rupee makes hardware makers resort to technology solutions as cost-cutting measures. Shashi Mal, IBM India system and technologies Group Director says, "Plans to roll out technology solutions which will help enterprises generate more return on their investment."

With the price increase of products being the option, the device making firms are considering the use of fewer servers or storage products for the same level of performance, saving costly space and lowering power bills. And this is possible only through the use of Virtualization technology to perform multiple functions using less hardware. According to HP India marketing and alliances TSG Director Durgadutt Nedungadx, as reported in Economic Times, "The company's virtualization technology platform broadens its reach in the marketplace and provides end-to-end benefits." This will be very evident as a study predicts the number of servers being virtualized will increase from 12 percent to 50 percent in 2010.

The basic need for this virtualization is to reduce the chances of price fluctuations and maintain the contracts which are mostly long termed. The storage and server businesses typically have a long sales cycle where the contracts are long-term in nature and any fluctuation in prices adversely affects them.