Does itself
Common sense really applies. We all know that servers generally don't need anywhere near the resources allocated to them 95% of the time - hence why virtualisation is popular.
Bog standard Windows 2008 box generally has 2Gb RAM "allocated", 1 CPU assigned and shares a 4Gbps pipe with about 8 other servers. Anything a bit heavy (multiple roles, maybe an appserver for Oracle forms etc.) then it gets another 2Gb RAM and another CPU.
For managing the resource then VMWare VCentre does all that for me really. I split the farm into 3 priority groups and technically any spare resouce can be allocated to a demanding VM guest on demand should it require more juice.
If the host doesn't have enough then it gets moved via DRS to another host who can provide the relevant power...
Simples.


