As the issue of energy consumption is getting more and more important, it is important to advance knowledge and technology in the field of energy efficiency, i.e. where and how energy is consumed and how it might be reduced without compromising performance. This thesis will elaborate on the use of virtualization, live migration and virtual machine (VM) migration heuristics – deciding when and which VM to migrate – for energy efficient management of hardware resources in small-scale server settings, such as, for example, in small and medium-sized business (SMBs). The aim is to use as little physical servers as possible, though still delivering the original level of performance.