One of the major advantages of virtualization is the ability to dynamically add CPU and RAM to running virtual machines. Have a box that gets a sudden spike? Add more RAM on the fly and let it go. It's a fantastic way to deal with certain compute issues, and it can make a tough decision disappear due to the fact that downtime and reboots aren't required.
However, allocating CPU and RAM with the click of a mouse -- dynamically or otherwise -- can have deleterious effects on your servers in some circumstances. You really need to understand your workload and your OS.
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