Virtualization is more efficient in using resources. This reduces upfront costs and allows your business to grow over time, as needed, rather than purchasing equipment upfront that can handle 5 years of company growth. Instead, with virtualization, a company purchases what it needs and then expands later to match growth. Storage, processing and network capacity can be added without interupting the existing operations. The benefit to scalability is that it reduces the initial and long term equipment costs required to run your business.