First: What is a Server Hugger? A server hugger is an individual or a business group who demands access or control over their own dedicated server.
Server Huggers can hinder IT innovation and undermine business value. I found that eliminating server huggers from inside Intel's IT organization and from within the business units we support is a key first step on putting our organization on a path to take virtualization adoption from 10-20% (today) to between 70-80% (in a few year) in our office and enterprise compute environment. (read more)
I invite you to read my blog titled "Silos and Server Huggers. What's Holding your IT Organization Back?" and comment here or there.