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Pressed to reduce IT costs, SMBs are investigating virtual environments and cloud computing. Both strategies reduce the size and control the expansion of data center to cut hardware, power and cooling, space, management and disaster recovery costs. Similar in their ability to reduce costs, virtual environments and cloud computing differ in initial and ongoing costs. Cloud computing introduces management risks that many SMBs are unable to hesitant to take. Implementing virtualization offers SMBs offers a way to start saving money and open a pathway to cloud computing. Complete virtual infrastructures provided by Dell and VMware allow SMBs to transform the cost structure of their data center while improving service to their growing business.