This project delves into the complexities of data center virtualization, presenting two scenarios for a university: establishing an in-house virtual center or outsourcing to Amazon Web Services. It meticulously examines the technical aspects of virtualization, including the role of hypervisors (Type 1 and Type 2), virtual design considerations, and the critical importance of scalability. The project also investigates the physical limitations and external considerations that influence virtualized implementations, with a focus on Storage Area Networks (SAN) and robust security measures. Furthermore, it emphasizes the significance of security policies in organizational design and explores the implementation of a disaster recovery system for a virtualized data center. The project highlights the benefits of virtualization, such as cost reduction and improved resource utilization, while also addressing potential challenges. The analysis underscores the importance of a well-planned and secure data center infrastructure to ensure data integrity, business continuity, and operational efficiency.