Microsoft is rolling out virtualization technologies for telecom operators that use its Mediaroom Internet Protocol TV service -- helping them cut costs by running multiple Mediaroom "virtual servers" on a single piece of hardware. Microsoft says the move, a first for the IPTV industry, could create as much as a sixfold reduction in the amount of server hardware required to run the Mediaroom service.

That's all well and good for the operators -- and for Microsoft, if it causes more of them to adopt its offering. The company says it now has the lowest server requirements in the industry. But the big question is, will those cost savings get passed on to IPTV users?

"That's obviously not a direct decision that Mediaroom or Microsoft makes, but it could definitely play out like that, just because it would cost less for an operator to run a comparable service now," said Ben Huang, Mediaroom director of product management.

But don't call your IPTV provider looking for a price reduction just yet. Microsoft isn't saying which of the companies will adopt the approach, leaving it up to them to announce their plans if they want to. Major IPTV services currently using the Microsoft Mediaroom technology include BT Vision in the U.K. and AT&T Uverse in the United States.

Microsoft says it expects operators to start rolling out the virtualized solution later this year. Smaller to mid-sized operators are likely to be the first to try it, Huang said, because the cost savings will be more evident.

IPTV uses standard phone lines to deliver high-quality television signals and related features. It works by transmitting only the channels and data that a user wants to access at any given moment, switching quickly between them and requiring less bandwidth than traditional cable, which sends out many channels at once so that viewers can tune from one to another.

Microsoft says there are now more than 3 million subscribers globally using Mediaroom-powered IPTV services. Huang said there won't be any degradation in the end user's experience or features when operators switch to the virtualization technology.