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Virtualization Performance vs. Traditional IT Performance
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Virtual machines that reside on the same physical server share underlying hardware resources, but are completely isolated from each other as if they were physically separated. This means that if one virtual machine experiences availability problems, it will not affect the availability of applications running on the other virtual machines on the server.
Most servers in production today run only a single application. While this approach ensures the smooth operation of the application, it uses only a fraction of the IT resources available on the underlying hardware.
In contrast, virtualization makes it possible to run several applications at the same time on a single physical server by hosting each of them inside their own virtual machine. By running multiple virtual machines simultaneously, a physical server can be driven to much higher utilizations, albeit with some performance overhead.
Availability
In the event that the underlying hardware itself experiences performance or availability problems, VMware provides the ability to migrate live applications automatically from one physical server to another with no interruption in service. This capability holds enormous advantages over physical infrastructures when it comes to backup and recovery, but VMware also leverages live migration to enable exclusive capabilities such as dynamic policy-based allocation of hardware resources.
http://www.vmware.com/overview/performance/overview.html
Virtualization Performance vs. Traditional IT Performance
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