This document discusses virtual data centers as an alternative to traditional physical data centers. It defines a virtual data center as one that uses virtualization technology to partition physical servers into multiple virtual machines. Key benefits of virtual data centers include cost savings through more efficient hardware use, easier management and maintenance of virtual rather than physical resources, and faster recovery from failures through data backups and migration of virtual machines. The document recommends 10/40/100 Gigabit Ethernet as necessary infrastructure to support a virtualized data center and realize these benefits.