We are entering an era in which efficiency is the driving force in IT buying decisions. Power and cooling costs are out of control, compute density is approaching the physical limits of the datacenter, and server management costs are skyrocketing. This paper addresses a variety of solutions to these problems: transition from pure scale-out to hybrid, scale-up architectures; the use of blade servers to enable higher compute densities and drive management and OpEx efficiencies; the implementation of server virtualization to improve capital equipment utilization and power efficiencies; the application of converged network fabrics to reduce infrastructure and management costs; the use of high-speed interconnects (10GbE); and the use of Linux as a cost-effective alternative.