A method of creating and managing virtual servers utilizes separate master copies of information such as operating systems, configuration files, and application programs. When a virtual server is created, it loads an appropriate operating system and configuration information. During the boot process, the virtual server is configured to provide a predetermined service. Appropriate application programs are subsequently loaded to support the service configuration. Multiple virtual servers can be created and configured using the master copies of information, thus reducing the amount of customization required by each virtual server. Virtual servers can be easily restarted from failures with minimal loss of data.