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A server running a number of virtual machines can sustain a higher utilization than if those services were running on discrete hardware. |
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Virtual servers can reduce the amount of rack space required by increasing service density. |
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Cooling and power bills are cut by using less servers, more efficiently - idle server hardware does not "powersave" like the equivalent desktop. |
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Disaster recovery can be simpler, virtually - an entire machine, operating systems, settings and all, represented as a single folder, and fast, highly redundant RAID can be shared by many services. |
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Scalability improves - servers can be moved to more powerful hardware with no downtime. |