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= Cost =
The cost savings are rather obvious. An entire rack compressed into one or two computers. Picture the space and power savings. The greenhouse gasses gas not being generated by the power you're not using. The number of computers that you are not buying. The hours you are saving in setup time and administrative time. When it comes to saving money this is definitely a winner. You can take that extra money and pass some on to customers and keep some extra for yourself. = The Down Side = Any time you add another layer then you have another layer of things that can go wrong. It takes some learning to understand the process and there is the possibility that one person can screw up the system for everyone. As virtualization develops it will get better. OpenVZ is very stable in that it is far less intrusive than other virtualization methods. It is limited to Linux only so BSD and Windows users will have to do something else.