How much virtualization do we need?

Earlier this year there was a discussion with my technial sales colleagues regarding what is the right level of virtualization. This may sound a bit superfluously these times as there are plenty of technical excellent implementations like KVM for Linux out there. But do we need to use a sledgehammer to crack a nut?

To help sort out the right technical solution for virtualization
requirements starting with the business requirements (something we
techies don’t like, but it’s necessary to fit the technology to the
problem and get a project funded).

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