There's such a huge amount of products (commercial) and so many options 
open-source that I would just like a little feedback as to what others 
would do in this situation.

I have 80 thin-clients that boot off of an LTSP server that is pretty 
bare bones. The user is presented with a login script where they can 
choose which back end server to use to host their X session. We have 
about 22 higher powered machines that students use for their day to day 
X session and statistical work.

I would like to reduce the number of back end servers down to just a 
few. I would like to take maybe 3 beefy servers and have it appear as if 
its one machine, or a pool of resources (cpu and ram). So a user will 
simply boot via LTSP and there is some virtualization happening where 
the machine their session is running off of is essentially a cluster and 
their session is running off of any one of the three servers - load 
balanced. VMware View is a product that does this now. However...

VMware is too expensive for our department. Too many products, too many 
licenses. I dont believe virtualbox can do this. We are running all 
RHEL5 and some RHEL6 on these back end machines. The LTSP server is 
Ubuntu 9.10. We're slightly out of date but we're on a secure network 
and everything is working!

Is anyone doing this now? Does natively clustering with RHEL work well 
with LTSP? Looking for ideas.

thank you

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