What are the best practices for running SQL Server in a Virtual Machine? My on-line transaction activities are very low, but there is a high amount of data processing for the purpose of providing reporting data to multiple web sites.
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As with physical machines IO is king. There will be a noticeable IO hit from virtualisation (how much of a hit depends on the technology you choose), so make sure that you do nothing that can exacerbate this and harm IO performance further.
Of course if your entire DB (and everything else the VM is running) fits into the RAM allocated to the VM and it sees very little write activity, IO performance can be much less of an issue.
Edit: a few more points:
Here's a good place to start: http://www.brentozar.com/sql/virtualization-best-practices/ and http://sqlskills.com/blogs/brent/category/Virtualization.aspx