Is virtual machine software a panacea?

A client was probing where and how virtual machine software should fit in an organization's overall IT strategy. The discussion got a bit heated at time because I asserted that while virtual machine software is an important addition to an organization's set of tools, it is clearly not a panacea.

A client was probing where and how virtual machine software should fit in an organization's overall IT strategy. The discussion got a bit heated at time because I asserted that while virtual machine software is an important addition to an organization's set of tools, it is clearly not a panacea. There are many other virtualization technologies that are better suited to some important tasks.

I've put some of those ideas, the ones that would not make the client easily identifiable, into a recently published paper. The paper, Virtual Machine Software is not a Panacea, can be found here.

Do you agree with this reasoning? Since I made no attempt to make the document comprehensive, I'm sure that there are other points that were not included. What other points do you think I should have added?

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