How does virtualization improve server utilization?

Posted by Continuation on Server Fault See other posts from Server Fault or by Continuation
Published on 2010-04-30T21:09:19Z Indexed on 2010/04/30 21:18 UTC
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The biggest benefit of virtualization is usually said to be improved server utilization.

But why do I need virtualization for that?

Say I got N physical servers that are lightly used. Why don't I just combine all the apps on those N servers into 1 physical server? This way I don't incur the performance penalty of virtualization.

What does virtualization buy me in this case?

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