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while in generall this works (and I also did this a few times), the real question is why?
Oracle RAC provides everything, which a VM can provide (and even more) - no need to have live migration on VM level or anything else.
There are only 2 advantages especially Oracle VM will provide:
1.) Easier setup with the help of OVM templates.
2.) Hardware Partitioning.
So everything else a hypervisor will introduce is performance overhead. And especially if you do lots of I/Os and context switches (which is the case with an OLTP database), then the VM overhead will be recognizable.
My personal experiences with x86 hypervisors shows that it is likely around 5 to 20% compared to native hardware (even if you only run a single VM).
Don't ask what happens if you run multiple. Other (non x86) hypervisors and virtualisation (like Solaris Containers) may provide better numbers (close to physical hardware), but this also only counts for single VMs.
My advise: If you want performance, go physical....
And PS2: If you really think about OVM because easy setup and Hard Partitioning, I recommend to have a look at the Oracle Database Appliance (ODA). Which provides all that.... and good performance.
Thanks for reply Sebastain.
Yes our system will do lot of I/o interm of reads and query searches.. one more question will using the SSD disk on the VM will it make here to physical ?
well SSD will increase performance - however the hypervisor uses CPU resources for the I/Os.
So SSDs on physical hardware will definitely increase the I/O better than on VMs....
So: Same arguments as above.