Server virtualization is the most important new technology introduced in the data center in the past decade. It has changed the way we think about computing resources and has impacted every aspect of networks, storage and servers themselves. Due to its popularity, server virtualization is being used for all applications including large database mission critical applications. It is important to consider that server virtualization has changed many things, including data protection. In this paper we will review the history or server virtualization and its impact on data protection. We will discuss the challenge of protecting virtualized systems and review the new data protection technologies developed as a result.