Although it is widely acknowledged that server virtualization technology has the potential to transform a large part of the IT industry, issues surrounding the adoption of virtualization technology have received relatively little attention which this study sought to fill the existing gap. Most prominent of the challenges, that are being faced today, are organizational factors. This research sought to find out the role of organizational factors for successful adoption and implementation of server virtualization in 60 companies listed in the Nairobi Securities Exchange. The study employed a descriptive study and targeted the chief information technology officer, information technology managers, information system managers and managers involved in policy making decisions on computing systems in the listed companies on the NSE. Both primary and secondary data were collected in completing this study. Primary data was collected using a questionnaire. Descriptive and content analysis techniques were employed. Quantitative data analysis was done by descriptive statistics by use of SPSS to obtain percentages, tabulations, means and other central tendencies. The analysis revealed that 97.5% of the respondents indicated that server consolidation minimizes wasted capacity. The study found out that there was 77.8% of corresponding change in the implementation of server virtualization technology induced by organizational factors. Test of overall significance ANOVA, at 0.05 level of significance found the model to be significant. The study recommends that organizations should develop proper infrastructure in order to keep up with the demands of the constantly evolving virtualized environment that runs their servers.