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This session explores the landscape of system and application performance in a virtualized world, in light of future system and architectural trends. We will cover the impacts of hardware architecture and hypervisor futures and the corresponding implication to virtualization scaleout, including multi-core, large memories, hardware optimization, I/O virtualization and paravirtualization. Finally, we will explore the trends, reasoning and implications of IP storage, how it benefits virtualization architectures, and the key performance characteristics and choices available.