I have been a SQL Server DBA for about 12 years. I have experience with both VMWare, hyperv, and of course physical. The biggest lie being told to business is that they should plow a bunch of money into virtual licenses and all problems are solved. I understand why the lie works; most in business don't understand what a database server really is in the first place. If they did, they would realize that in almost all cases VM'ing a database server is a completely redundant. Database servers by their nature are already virtual. I manage thousands of databases that map to thousands of applications and the number of databases/instances requiring a a dedicated OS can be counted on with two fingers.
On the application side:
While I think in many cases VM'ing applications is/can be a good idea, large servers with a TB of ram are not cheap, they run about 100k right now. SAN arrays are most assuredly not cheap by any definition between 1 and 3 million for a small one. Applications that were running on small servers using local disk (the cheap servers) are now running in VM technologies on the most expensive disks systems you can imagine, no matter how valuable the application is to business.