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As the growth of IT spending has trended down to the mid-single digits in recent years, the IT services industry has continued to focus on productivity improvement to take out costs. While innovations in new service business and delivery models are keys to margin growth, service quality is ever more important to protect the client base. This paper reports end-to-end current practices in the enterprise hosting business, which is by far the largest revenue source in the overall IT services industry. The current preeminent problem is how data centers can be consolidated to host large numbers of servers economically. It is found that the scalability challenge is primarily a governance bottleneck. Research focus has been placed on streamlining the on-boarding processes with visual accountability of the delivery roles and collaboration with clients. It is shown how Web 2.0 technologies can be utilized in a new governance model for both productivity and quality improvements.