This report presents a virtualization proposal for Soft Arc Engineering, recommending the implementation of a virtual data center using VMware vSphere. The proposal outlines the migration of existing IT resources, including mail, CRM, and web servers, to a virtualized environment. The proposed infrastructure involves creating virtual machines on physical servers, utilizing vSphere networking for enterprise connectivity, and implementing clustering for high availability. A hybrid cloud solution is suggested, incorporating a private cloud with a NAS for backup, linked to two public clouds for mirrored backups and disaster recovery. The report emphasizes security through firewalls, malware protection, and the VMware NSX security platform. Virtual desktops are to be created using VMware Workstation, allowing access via thin clients. VMware's features, such as speed, security, scalability, and the ability to run multiple operating systems, are highlighted as key benefits. The proposal includes detailed technical infrastructure specifications, emphasizing the use of VMware ESXi hypervisor, vSphere networking, and clustering at both the application and virtualization layers. Backup strategies involve both on-site and cloud-based backups to ensure business process continuity in the event of a disaster. The report concludes with a discussion of required information security changes, including firewalls, data encryption, anti-malware software, and the VMware NSX data center feature to enhance security across the data center and the cloud. This comprehensive proposal aims to optimize Soft Arc Engineering's IT infrastructure for improved efficiency, reliability, and disaster recovery capabilities.