The ability to add more resources to a virtual server, in a few mouse clicks is amazing!Virtual servers are very handy to use when testing applications/software before deploying them into a live environment. If something goes wrong, the server is easily replaceable with little effort i.e. using snapshots to revert back to a previous point in time.A virtual server is just a large file that is stored on a physical disk. Which means, once you have built a virtual server, it can be copied/moved anywhere. Making backup very easy to achieve.
Room for Improvement:
There are no doubts virtual servers can be very useful but there are also several important disadvantages that you should be aware of, With a physical server things are less complicated, you do not have to have expert knowledge in server virtualisation.
Some versions of Windows operating systems do no run well on a virtual platform, such as XP and WIndows 2003 - even with integration tools installed.
One major problem is - If you have forgotten a password for the only user account on a virtual server, you wont be able to plug in a password reset disk - it will have to rebuilt. (Or restored from a backup if you have one!)
Anyone that has not looked into virtualisation needs to. The benefits are endless, we have been running virtual machines since 2007 and since then our infrastructure has become more efficient and reliable.