Jeff Mlakar shares a few tips on hosting SQL Server via VMware virtual machine:
Why is Over-Allocating a VM Bad?
Why is is so important to allocate just the right amount of resources for your guest VM running SQL Server? We all know the problem with an undersized system; however, what about an oversized system? What problem could that be? Here are a few common issues to consider:
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Over-allocating CPU causes poor resource utilization across all the guest VMs
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Over-allocating memory unnecessarily increases memory contention and overhead on other guest VMs
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Having more vCPUs assigned to the VM can have an impact on licensing.
There are some good points in the post, so check it out.