Yeah, all of our new servers are required to be virtual for the last two years unless there's a 'business reason' for not doing it - and the only 'accepted business reason' I've heard is when a vendor says they won't support it for an app we're already relying on.

Physical doesn't makes sense right now, but I'm concerned that once everything is virtual we will start to see new problems. A wrong setting is easy to spot, but a "less than optimal" setting in a vm farm may take a while to show up and even longer to determine what the problem is and fix it.

Our experience right now is the 'glossy sales literature' type - everything's easy and wonderful.