The Virtualization technology [VT] plays vital role in efficient utilization of computer resources in any organization and is the basic concept used in cloud computing. Main advantage of using VT is that we need less Information technology [IT] infrastructure resources. We prove here that live migration feature provided by XEN hypervisor is quiet useful. It increases availability of application and is transparency to user. We executes live migrate command of XEN, the VM runs on source host till all memory pages are transferred to destination host (pre-copy). We can also observe that during and after migration VM preserves its IP address. The main use of virtualization technology is server consolidation i.e. to run multiple server operating systems (VMs) on single physical hardware. By running multiple VMs on single physical machine we can reduce expenditure on IT hardware.