A method for power management, comprising: gathering resource usage data for a first blade and a second blade on a blade chassis; migrating each virtual machine "VM" (202; 204) executing on the first blade to the second blade based on the resource usage data and a first migration policy, wherein the first migration policy defines when to condense the number of blades operating on the blade chassis; wherein at least one VM executing on the first blade is connected to a VM on the second blade using a virtual wire, wherein the connectivity provided by the virtual wire is maintained during the migration of the at least one VM to the second blade, and wherein the virtual wire is implemented by a virtual switching table; wherein the migrating comprises: obtaining migration criteria for a first VM executing on the first blade, suspending execution of the first VM on the first blade and obtaining information to migrate the first VM, identifying a first virtual network interface "VNIC" executing in the first blade that is associated with the first VM and obtaining information required to migrate the first VNIC, migrating the first VM and the first VNIC to the second blade using the information required to migrate the first VNIC, configuring the first VNIC and the first VM to satisfy the migration criteria, updating the virtual switching table in the blade chassis to reflect the migration of the first VM from the first blade to the second blade, and resuming execution of the first VM on the second blade; and powering down the first blade after each VM executing on the first blade is migrated from the first blade. gathering resource usage data for a first blade and a second blade on a blade chassis; migrating each virtual machine "VM" (202; 204) executing on the first blade to the second blade based on the resource usage data and a first migration policy, wherein the first migration policy defines when to condense the number of blades operating on the blade chassis; wherein at least one VM executing on the first blade is connected to a VM on the second blade using a virtual wire, wherein the connectivity provided by the virtual wire is maintained during the migration of the at least one VM to the second blade, and wherein the virtual wire is implemented by a virtual switching table; wherein the migrating comprises: obtaining migration criteria for a first VM executing on the first blade, suspending execution of the first VM on the first blade and obtaining information to migrate the first VM, identifying a first virtual network interface "VNIC" executing in the first blade that is associated with the first VM and obtaining information required to migrate the first VNIC, migrating the first VM and the first VNIC to the second blade using the information required to migrate the first VNIC, configuring the first VNIC and the first VM to satisfy the migration criteria, updating the virtual switching table in the blade chassis to reflect the migration of the first VM from the first blade to the second blade, and resuming execution of the first VM on the second blade; and obtaining migration criteria for a first VM executing on the first blade, suspending execution of the first VM on the first blade and obtaining information to migrate the first VM, identifying a first virtual network interface "VNIC" executing in the first blade that is associated with the first VM and obtaining information required to migrate the first VNIC, migrating the first VM and the first VNIC to the second blade using the information required to migrate the first VNIC, configuring the first VNIC and the first VM to satisfy the migration criteria, updating the virtual switching table in the blade chassis to reflect the migration of the first VM from the first blade to the second blade, and resuming execution of the first VM on the second blade; and powering down the first blade after each VM executing on the first blade is migrated from the first blade.