The return of investment (ROI) for a virtual computer can be seen quicker than that of a physical computer. How? With servers costing thousands of dollars per physical server, the hardware needed includes items such as a monitor, keyboard, mouse, case, motherboard, ups and other mission critical physical parts.
Virtual machines need a host comptuer that has more 'horsepower'. With memory and hard drives being more economically feasible to purchase in today's dollars, a computer (server) running higher end processors, more RAM and hard drive space. Hard drives today cost around .10 per gigabyte (10 cents!) making the purchase of hard drives more affordable than ever.
With quad core processor prices falling the purchase of a physical server with several terabytes of space is affordable for even the smallest business. These physical servers can in essence hold several virtual servers if they are loaded with plenty of RAM. With processing speeds reaching several gigahertz, a single physical server has the processing power needed for today's applications.