Replacing 120 physical servers with 13 VMware ESX host servers has enabled Sheffield Hallam University to expand server capacity considerably, while reducing energy costs and space requirements. Significant savings have been achieved on the cost of installing and operating hardware, and further efficiencies have been realised from exploiting the features available in VMware ESX Server. While there are risks involved, and performance needs careful monitoring and tuning, the considerable financial, environmental and operational benefits make virtualisation a technology worth considering for universities and colleges, as well as other sectors.