advice on intalling a new server


intend to replace the existing server to our organization.
 The organization has 150 workstations.
 Currently, we have one machine with server 2003 and exchange 2003 installed on it.
 I want to buy server 2008 and exchange 2010 and I am considering using virtualization.
 I'd love to hear some advice from people who did this kind of projects already.
 Whether to use Microsoft's solution or vmware?
 Should I move to virtualization for the two servers?
 If so, what the recommended server specifications?

 Thanks everyone
Who is Participating?
Muzafar MominConnect With a Mentor Commented:
i would sugget you go for virtulization , we are already using it and the performance is much better that having exchange on physical server

for 150 mailboxes 4 virtual cpus with 8-12 GB ram is enouch
ckeshavSr. Infrastructure SpecialistCommented:
If you want to Virtualize, VMware provides free solution VMware Esxi.
The Hardware would
One Single Server with latest processor(Dell, IBM or HP)
32 GB of Ram
You can go for Internal / External Storage with 1TB Hard Disk Space.

David KrollCommented:
I have to second using VMware ESXi.  We recently came off of a 1 server setup and now have 3 VM's on one server with 24 GB ram and dual Xeon E5520 processors.  Runs like a dream.
ronenizAuthor Commented:
Thank you all for the advice.
dkrollctn: how many users you have ? what servers running with the host ?

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