Hostbasket, a leading hosting company and SaaS-provider in Belgium with over 30,000 SMB customers reports that in a recent survey of our datacenter with over 1,000 servers, we saw that the average CPU-usage was only 12%. On the other hand, investments in new server hardware, datacenter space and the cost of power and cooling - now at an all time high - keep prices for dedicated servers high. The hosting industry is a very competitive industry, so we needed to come up with an answer.

We have been investigating virtualization technologies such as Xen, VMWare and Virtuozzo, but always found problems (such as security-issues, complex and expensive licensing, stability or scalability) that kept us from creating a virtual machine-offer.

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