Question : To Virtualize or not

We have a single Server (Server 2000) Domain Controler and File Server and I'm replacing it with a new Server running Server 2008 (new hardware too).  Should I virtualize the new Server?  If so, what are the down fall or issues I might run into?  Long term I will retire the old server 2000.

Answer : To Virtualize or not

Most people don't virtualize, just for the sake of virtualization.
Usually, people go to virtualization, when they have an application/service that they want to make scalable, redundant, or static....or they have a specific "other" purpose.

Example 1....
I have a website.... I setup multiple virtual webservers in cluster configuration to give my site high availability and scalability.

Example 2....
I have a test bed of servers, whose configuration will always need to be the same, so that I can be sure i'm always testing against an identical environment when developing my application.  I setup my servers as virtual servers, and everytime I shut them off, I can discard all changes.

Example 3....
I only have one server, but I need it to serve more than one purpose.  I have determined that this server is not using it's full potential, so i'm going to install a virtualized email server on top of it to avoid having to buy another server.
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