RightSizing and Virtualization

ComputerWorld recently released a pretty interesting article on RightSizing and the use of virtualization technology at Microsoft.  First off, I didn't know Microsoft has over 17,000 servers running internally but it's definitely cool to see how we experience the same problems of server (under) utilization as other corporate customers.  This article gives everyone a glimpse into the operational requirements of a company who is looking to better leverage their hardware investments while meeting business needs.  In that sense, we're not different than anyone else.

Do you have any RightSizing initiatives going on at your company?  How might something like this apply to a development environment?