The IT department where I work is trying to move to 100% virtualized servers, with all the data stored on a SAN. They haven\'t done it yet, but the plan eventually calls for mo
SAN - of course, and clustering, but regarding Virtualization - you will take a Performance Hit (may or may not be worth it to you):
http://blogs.technet.com/andrew/archive/2008/05/07/virtualized-sql-server.aspx
http://sswug.org has had some notes about it in their daily newsletter lately