Virtualization has been mainstream for almost two decades now. Unfortunately/horrifically I still see too many bare-metal installations.
There are three reasons why virtualization is important.
1. It makes upgrades so much easier. Need to upgrade Amazing Charts or SQL Server? Take a quick snapshot of your virtual machine then perform your upgrade. If the upgrade fails, restore the snapshot to get the virtual machine back the way it was then try again or call support. With bare-metal, if an upgrade fails and trashes your machine, your only recourse is to restore from backup which could take half a day. Restoring a snapshot is 5 minutes or less.
2. Backups and restores become tons easier. It's so much easier to backup a virtual machine and restore one than it is bare-metal. Having to deal with restoring bare-metal installs makes me want to scream.
3. Moving to new hardware becomes tons easier. Just set up the new server, export your virtual machines to it, then turn the old server off. Done. No more reinstalling all your apps.
If any of you have questions, call/email me. I'll even do a demo if we need to.
JamesNT