Ever since there is virtualization especially these few years, your IT team might have been bothered by this question. To virtualize a server or….? The answer is depending. Depends on? Clearly, there are more advantages to virtualize; example license of the software is cheaper, you can install more than one instances on the same server, a virtual switch, it is portable etc.
However, there are a few things to consider that virtualization might not work for you. If you need to split the instances for different departments and it has total privacy. Virtualization does not give you true isolation, there is risk your virtualized server is accessible through the underlying virtualization OS.
Disk IO is started to divide with the number of guest machines you have deployed. The greater the number of guest machines, the slower the disk IO. If you are still using hard disk storage, this is a crucial factor for the SQL database to some.
Failure risk – if your server has failed due to hardware, you might have more than one servers are failed if you virtualized. Especially to those do not have spare resources or a virtualized cluster. Not for dedicated servers, if one failed, the rest will continue to work.
If your guest machines are not paravirtualized, there is a performance overhead, For example, a true hardware ethernet will perform 2 ~4% better than a virtualized network card.
Some software makers have realized they are missing the virtualization segment and have made changes from processor count to core count license but the end of the day virtualization will save you money if you environment permit you to do do.