Web services and data hosting company Imagineering Technologies managing director Matt Proctor echoed Searle's concerns, adding that virtualization will need to develop further if it is to become more effective at reducing server growth.

"Because it's a growing solution, the market is still a little immature, but once virtualization is combined with clustering its commercial prospects and use will increase dramatically," Proctor said.

He said that while the technology represents a migration from a dedicated to shared environment, it is not always necessary to inform hosting customers.

"There is no commercial need to inform the customer but with shared virtualization in a single or clustered environment they are going to have a change in capacity so it would be commercially prudent to inform them."

Searle agrees adding client concerns will be alleviated if a business has adequate security structures and practices in place, which remove the need to distinguish between dedicated and shared environments.