Server consolidation

I don't "get" server consolidation yet (but then I'm not from PC world), though I see why it's of interest to the Chip and Tin crowd; yes it can save on electricity and cooling. But in what way does it save on people costs (still the same number of Windoze instances to manage?) or software costs (still the same number of app and OS licences to pay for?)

Also, is this the "Common System Interconnect" announcement? If so, why not actually mention it, now that Intel finally has something to compete with Hypertransport or LDT or whatever AMD's inter-chip bus is called.