Small Business virtualization isn't looking for High Availability or any marketing fluff out of VMs. They're looking to pack the usual compliment of 5 to 7 servers into 1 or 2 boxes and put them in a room that doesn't need special cooling requirements. Cramming all the features of a PDC, BDC, File Server, Mail Server, Sharepoint (or otherwise) server, <insert misc server(s) here> into one or two Windows Server installs is a Bad Idea (tm). Hence the need for virtualization in a SMB environment. None of these systems will tax a Core2-based crap SMB server, let alone real server hardware. Purchasing a single (or perhaps two) more-than-capable servers and consolidating it all down will give the environment reduced power and cost, not to mention the bonus of modularity for individual server reboots (as needed), however at the moderate concern of single-point-of-failure (see "perhaps two servers"). Is there server sprawl? Perhaps. Just not physically.