But virtualizing the kind of mission-critical applications that tend to run on bigger boxes (application servers, database servers, and such) is much more problematic.
This keeps on being repeated by the register as QED fashion.... Have you not read case studies that show oracle, sap, exchange all run perfectly acceptable in a virtualization platforms...?
Of course the is the 1% of really high-end stuff such as 8-ways with 256GB of RAM... but they are in a very small minority - and this hardware is now regarded as low-spec compared to 16-way box built for virtualization.
Please stop using the word "fake servers". Virtual Machine are no less real than a physical server. It's just irratating. VMs are no less real to the end users who get their email and desktops from them every day...