[snip]
Virtualization includes overhead.
It is fine as long as your application can tolerate that, but if your
performance demands grow there will be a point where a DB server in a
virtual machine will cause trouble but the same HW as a "real" machine
would still suffice.
[/snip]

We run MySQL in virtualized environments processing millions of records
a day (virtual servers interact with our SAN for storage) and have
actually enjoyed performance increases. We are also able to take
advantage of advanced disaster recovery/business continuity options
available to us in this kind of environment. 

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