Consolidating with Virtualization…your thoughts.

I was reading an article the other day about virtualization and server consolidation at a popular universty in the US. Using virtualization technology, they were able to dramatically reduce the number of servers within their infrastructure going from something like 74 down to 40 servers and projecting that number to decline to 30 with further virtualization.

Since I personally don’t have much experience using vitualization in an enterprise environment, I’d like to know about some of your thoughts and experiences about using virtualization to consolidate servers.

One specific question I have is, what are the best apps to run together in a virtual environment?