In production, I’ve been running both VMs and physical servers. Virtualization clearly brings huge flexibility:
Snapshots for quick rollbacks
Easier migration and resource scheduling
Better overall hardware utilization
But when it comes to performance, the difference is still noticeable in some cases. Especially for I/O-intensive workloads like databases, VMs tend to show higher latency and lower throughput compared to bare metal.
With modern hypervisors and optimized hardware, the gap has narrowed a lot, but from my experience:
General workloads and mid-level applications run perfectly fine on VMs
Mission-critical, performance-sensitive apps (databases, big data) are safer on physical servers
VM performance can be improved by properly allocating vCPU/memory, optimizing storage I/O paths, and avoiding long snapshot chains
This layered deployment approach helps balance virtualization flexibility with the stability required by critical workloads.