Turn your Xserve into two machines

Not literally, of course, but Tom Yager writes that he has been able to replace two of his Windows servers with one Xserve, running Windows 2003. How has he accomplished this feat? By the good graces of Parallels Desktop and the wonders of virtualization. Tom promises to give more details about his setup, but he claims that the 3 servers running on his Xserve (one OS X, 2 Windows 2003) are smokin'.

Tom Yager is a big fan of the Xserve, but I have to wonder about the wisdom of running enterprise level software in a consumer oriented virtualization product. I know I wouldn't be comfortable running any mission critical servers in Parallels since it is missing many enterprise level options that industrial strength virtualization solutions offer, and rightfully so. Parallels is working on a server version of their software, though I don't know if they plan on supporting OS X. Their website mentions running Windows, Linux, OS/2 or FreeBSD on the host machine, though they don't say what OS the host machine has to run.