The document discusses virtualization options to consolidate the State of Iowa's web hosting services onto fewer physical servers. It analyzes the problems with the current environment, such as low server utilization and high costs. Various virtualization products are researched, including free open-source options like OpenVZ, VMWare Server, and Xen, as well as commercial products like VMWare ESX. The next steps outlined are to complete testing virtualization platforms and finalize an implementation architecture plan.