I believe virtualization is a good idea. We took up virtualization a while ago too, and there are just too many great things about it to ever go back. Have you tried any of the suggestions yet? Let us know how it is going.
When it comes to a dedicated server, it is true that Java works the best. However it needs a lot of RAM. When it comes to signing up for a dedicated server, make sure to select one that will provide you with sufficient RAM for supporting the Java applications and ensuring the smooth functioning of your website.
Virtualization is a combination of software and hardware engineering that creates Virtual Machines (VMs) - an abstraction of the computer hardware that allows a single machine to act as if it where many machines.
So by using virtualised machines the Resource sharing is enabled and it helps to
for better performance.
How is sharing a single hardware resource will multiple virtual servers going to make performance any better?
If you can't put it in a dedicated server on 'bare metal', and it must be in a virtual machine you can do some VM customizing. Sometimes pinning a cpu core to a vm, or prioritizing a vm over the other vms with additional shares will net you some benefits on Java performance.
If it has to be in a physical server you can also look into some converged infrastructure solutions out there, which give you a best of both; hypervisor type agility and HA but on dedicated hardware... but that's another discussion.
I have used VMware Esxi and it is good VM machine. Like everyone is saying you gonna have to know how to allocate all the physical hardware requirements so that the machines runs smoothly. Putting a VM in a data center is better you have the options in some cases to use more bandwidth. Hence getting better connectivity.
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Depending on your unique business goals and priorities, your infrastructure might need physical servers or virtual servers, or both.AS per my understanding, There is lots of differences between two in terms of cost, performance, Disaster Recovery, High Availability, Security and Infrastructure Scaling