Not a direct answer, but Mantissa is working on x/86 under z/VM. Target
release date is 1Q2009. Virtualization rate is estimated to be about 700
images per z/9 engine. You can extrapolate for z/890 or z/10. 

http://www.mantissa.com/products/UV

<snip>
Hi List, we have recently been asked to virtualize a windows server
under
SLES9 Linux running in a z/VM environment. In other words: 

- A zSeries system running
   - a z/VM system running
      - a SLES9 Linux running
         - a windows (XP server I suppose)

My question is: How can I virtualize a server under a z/Linux ?  I have
tried XEN but have found it only on INTEL platforms. In fact I have read
Xen
works currently only on x86 platforms and it is being tried on AMD64,
IA64
and PPC. So I assume it doesn't work on zLinux. 

KVM 
VirtualBox
Virtual PC
BOCHS
QEMU

also don't seem to work on z/VM z/Linux platforms.

So my question is: do any of you know any way to achieve this
"invention"
our customer demands from us ?
</snip>
 

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