Carrenza, a U.K.-based company that designs, builds and manages hosted networks, has launched a virtualized hosting service that it claims can reduce annual data center costs by up to 20 percent and power consumption by 60 percent.

The virtualized hosting service is known as the Utility Computing Service (UCS), and it has been designed to help businesses reduce their environmental impact by making more efficient use of virtual servers. Using UCS, four or more virtual servers can use the same hardware footprint as one traditional server. It says this allows the reduction of much of the switching and network infrastructure necessitated by duplicate networks running side-by-side in co-location.

Carrenza points out that virtualization can offer a scalable enterprise hosting solution, which "provides businesses with the servers, service levels and resources they require to power their organization without them needing to buy or manage a hardware platform."

Additionally, businesses can exceed the number and size of servers, the amount of storage, and the bandwidth agreed as required, without excessive economic charges and without any changes to their contract.

"UCS is about making more efficient use of space in the data center," Sutherland told Techworld. "About 18 months ago, we looked at more efficient ways of doing hosting. At that time there was huge shortage of data center space and it was getting more expensive. We wanted to reduce costs and reduce space, but retain the service levels."

"Virtualization was a means to an end to maximize utilization of the servers we were running," he said.

Carrenza don't own any data centers, but rather rents space. It uses a range of hardware and offers virtual machines with between one and eight cores using AMD or Intel x86 64-bit processors. Each virtual machine (VM) currently runs between 2GB - 16GB of RAM on either Xen or VMWare virtual platforms (virtualization based on Microsoft Server 2008 is apparently 'arriving shortly').

Sutherland highlighted the fact that UCS is a bespoke service. "With UCS, we go through a consulting process with the client about what they need," he said. "We look at the amount of CPUs, RAM, capacity etc that the client requires and then produce a service offering to satisfy that."