Virtualization has made huge inroads in the Exchange world because it promises to give you better utilization of the machines you've already bought. However, running Exchange on real hardware can have significant benefits for Exchange servers—in fact, Microsoft exclusively uses physical hardware for its own Office 365 service. In this paper, written by Paul Robichaux, we'll explore the benefits of reduced license cost, reduced server sprawl, and lower overhead that come from using the simple, cost-effective HP E5000 system to host your Exchange mailbox and client access services on physical hardware.