This Oracle white paper describes the application of Oracle VM Server for SPARC to implement high-capacity enterprise systems. Oracle Solaris CoolThreads technology combined with Oracle VM Server for SPARC (previously called Sun Logical Domains), allows a single UltraSPARC processor to be subdivided into many independent virtual processors. Each of these virtual processors is allocated one or more independent threads.  By virtualizing a single large multicore processor into many smaller virtual processors, the system realizes much greater capacity — by several-fold in the field, and experimentally in the lab as much as 10 times greater capacity. This increase in capacity is realized at a significantly lower cost than an equivalent system built using many smaller physical servers.