The core services in cloud computing environment are SaaS (Software as a Service), Paas (Platform as a Service) and IaaS (Infrastructure as a Service). Among these three core services server virtualization belongs to IaaS and is a service technology to reduce the server maintenance expenses. Normally, the primary purpose of sever virtualization is building and maintaining a new well functioning server rather than using several existing servers, and in improving the various system performances. Often times this presents an issue in that there might be a need to increase expenses in order to build a new server. This study intends to use grid service architecture for a form of server virtualization which utilizes the existing servers rather than introducing a new server. More specifically, the proposed system is to enhance system performance and to reduce the corresponding expenses, by adopting a scheduling algorithm among the distributed servers and the constituents for grid computing thereby supporting the server virtualization service. Furthermore, the proposed server virtualization system will minimize power management by adopting the sleep severs, the subsidized servers and the grid infrastructure. The power maintenance expenses for the sleep servers will be lowered by utilizing the ACPI (Advanced Configuration & Power Interface) standards with the purpose of overcoming the limits of server performance.