Virtualization is the thing right now. Escpacially because VMWare released VMServer for free.
I’ve read quite a lot of posts about the pro’s about virtualization, and I`m annoyed by some.
This for some claim that virtualization is hardware efficient. Quite frankly, it isn’t. It is quite inefficient.
The thing though is that you don’t use your server optimally usually, and that with virtualization you can more easily get most out of your server, although you could get more from your server if you wouldn’t use virtualization. But that is a lot trickier, virtualization is quite flexible.
Virtualization doesn’t make hardware more efficient, it makes you more efficient at allocating resources of your server.
This server, w-nz.com, runs on a virtual server. I can’t affort or would fully use a ful dedicated server, but I can affort and use a virtual server. Efficient. But running all sites on the real server on just one server would be more efficient, but harder to do, espacially related to security.