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Every server?
That's like saying all of our company vehicles are economical subcompacts. Sure, it's nice to say, but what happens when you need to move a truckload? The point isn't capacity, but rather that each situation is different even within the same organization, and not all situations merit virtualization.

Got 8 servers with an average of 20% utilization and need a 9th? Virtualize what you can and save a bundle.

Need a firewall/VPN box, fileserver, and app server? You will want the firewall VPN appliance to be physically separate from the rest of the infrastucture. Virtualize to put two highly accessed applications on one machine? Bad idea. Use 2 machines and virtualize the failover machines for the fileserver on the application server and vice versa. with replication set as a "nice" process.

Virtualization is but one tool in the IT toy box. Use it where the application fits, not for bragging rights at golf.
Posted by Alpha_Dog
Updated - 2nd May 2011