5 Virtualization Options for State and Local Governments

State and local governments have depended on virtualization for years to modernize IT environments, optimize infrastructure and support essential services. As technology evolves and new licensing models emerge, many agencies are taking a closer look at how their current virtualization strategies align with long-term goals for modernization, efficiency and fiscal responsibility.

While virtualization remains the backbone of many government data centers, the landscape of available solutions has expanded. Agencies now have more choices than ever — from traditional hypervisors to hyperconverged infrastructure, open-source alternatives and hybrid cloud deployments — each with distinct benefits and trade-offs.

Hypervisors are the foundation of virtualization. They allow multiple virtual machines (VMs) to run on a single physical server, each acting like a separate computer.

Pros:

• Mature and reliable: VMware, Microsoft Hyper-V and KVM (open source) are well-established and widely adopted.
• Strong application support: Many enterprise and government applications are certified to run on these platforms, reducing compatibility issues.
• Flexibility: Agencies can allocate resources dynamically and support both legacy and modern workloads.

Cons:

• Cost: Licensing costs can be prohibitive for smaller agencies.
• Complexity: Administration requires skilled staff, which may be challenging for small IT teams.
• Vendor lock-in: Some hypervisors tie agencies to specific ecosystems or hardware.

Best fit: Medium-to-large agencies that need broad application support and have skilled staff. Smaller agencies may consider Hyper-V or open-source KVM to reduce costs.

Hyperconverged solutions bundle virtualization software with tightly integrated hardware and storage. This approach simplifies management while improving scalability.

Pros:

• Simplified management: Centralized dashboards make it easier for small teams to monitor and scale.
• Performance: Integration of compute, storage and networking delivers strong reliability.
• Scalability: Agencies can start small and grow as needs expand.

Cons:

• Hardware dependencies: Some solutions require buying proprietary hardware.
• Upfront costs: Initial investment can be higher than software-only hypervisors.
• Less flexibility: Agencies may be limited to the vendor’s ecosystem.

Best fit: Agencies planning a hardware refresh or seeking one-stop shop simplicity. Nutanix and similar platforms can reduce long-term operational costs even if the upfront pricing is higher.

Open-source solutions are gaining traction, especially for smaller municipalities that need cost-effective options.

Pros:

• Cost-effective: Most open-source tools are free or significantly less expensive than commercial platforms.
• Community support: Large user bases provide forums, documentation and add-ons.
• Flexibility: Agencies can customize and tailor the platform to their needs.

Cons:

• Support challenges: While communities are helpful, agencies may lack vendor support.
• Steeper learning curve: Requires in-house expertise to configure and maintain.
• Fewer certifications: Some critical government applications may not be officially supported.

Best fit: Smaller or rural governments with tight budgets and staff comfortable with Linux/open-source environments.

Rather than creating full virtual machines, containers package applications with only what they need to run. This lightweight approach is increasingly used in modern, cloud-based environments.

Pros:

• Efficiency: Containers use fewer resources and launch faster than VMs.
• Portability: Applications can move seamlessly between on-premises and cloud environments.
• Future-proof: Aligns with modern DevOps and digital transformation efforts.

Cons:

• Complex transition: Requires rearchitecting applications, which may be a heavy lift for legacy workloads.
• Skills gap: Many IT teams in state and local government are still learning container management.
• Less suited for legacy apps: Not all existing software runs in containers.

Best fit: Agencies exploring hybrid or cloud-first strategies, especially those modernizing applications or deploying new citizen-facing services.

Hyperscale cloud providers offer on-demand virtualization, storage and networking without agencies owning the hardware.

Pros:

• Scalability: Elastic resources allow governments to adjust capacity instantly.
• Reduced capital expenses: Pay-as-you-go pricing eliminates large hardware purchases.
• Disaster recovery: Cloud providers offer robust backup and continuity capabilities.

Cons:

• Ongoing costs: Usage fees can add up quickly if not carefully managed.
• Data residency: Some workloads may legally or operationally need to remain on-premises.
• Vendor lock-in: Moving workloads between cloud providers can be difficult.

Best fit: Agencies seeking flexibility, disaster recovery or specific workloads that benefit from cloud elasticity. Often deployed as part of a hybrid strategy.

Virtualization is not one-size-fits-all. Many agencies are adopting a hybrid approach — keeping some workloads on VMware or Nutanix, exploring open-source options for cost savings and moving others to the public cloud for flexibility. The right choice depends on factors such as:

• Budget constraints
• Staffing levels and expertise
• Application compatibility
• Long-term modernization goals

For smaller agencies, Hyper-V or open-source solutions may offer the easiest entry point. Larger cities or states may find value in hyperconverged systems or multicloud environments that balance cost and flexibility.

On your virtualization journey it is essential to have a trusted partner who can help you implement the right choice for your agency. CDW Government will help you assess the strengths and weaknesses of your system and find the best option to fit your needs.

Ultimately, the goal is not just to virtualize for efficiency but to align technology investments with the mission of government: delivering secure, reliable and cost-effective services to citizens. Our experts have over two decades of experience helping agencies achieve mission success, and we will be with you from assessment to integration.