One of the biggest single problems with going with %100 virtual machines in an organization is performance. Servers are consolidated and sharing the same hardware. Mission critical systems, especially databases and applications that rely heavily on databases don't perform as well with a hypervisor level between the OS and the hardware in the stack. Also like Victoria mentioned, there's limitations on bandwidth. If it was that easy everyone would simply be %100 vituralized by now, but the reality is on average companies are ~%40-60 virtualized... yes some more some less.
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