Daniel,
  We attempted the zVM with multiple instances of Linux running under
it.
 
As a technician, I thought it was a great concept. However, we ran into
more non-technical issues that eventually killed the project.
1) Politics       
2) Planning (Lack of)  - Support Structures, Tuning, Training,
Operations, DR, backups....etc,..etc..  All the things we have on the
mainframe side of the house, should have been considered before we even
got to the installation phase. 
3) Expectations - Start slow.  One of the first applications considered
was one of our biggest DB2 database applications.  Although never
implemented in Linux, it was not a wise decision.  
4) Cost -  To get the benefits of virtualization,.. you have to have
enough applications running to reach a break-even point.      
 
We had only one production Linux guest, and it was an in-house
application supporting our front office.  We had other Linux guests, but
they were strictly used as sandboxes.   
 
of course,... these I strictly my opinions.
Question came up here about moving to Linux from a host of servers. 

1. Have any of you experienced this? 
2. Did you go native LINUX or 
3. Multiple issues of Linux under Z/VM? 




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