Does server virtualization (Virtuozzo) impact server performance?

I'm currently designing a new server architecture in colab with a server tech, we'll need 4 dedicated servers and he has recommended to setup server virtualization via Virtuozzo, his reasoning is that it will make it easy to migrate to better hardware when needed. This seems like a good idea but some devs are telling my that it will degrade the performance of the boxes is this true? His plan is to install OS on 2 x SATA(Raid 1) drives and then place the virtualization on 2 x SSD's (Raid 1)
I would like a 2nd opinion on this,
Does the virtualization degrade performance, IF it does then by how much? Is it really this convenient to use such a virtualization setup in reference to migration? Any other thing to consider?

Thanks!


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