For production deployments, it is recommended to avoid using virtual machines for use with report services. (KB-7038)
In general, report services works well in virtual machines, including the case of installing SQL Server in a virtual machine.
However, in a large enterprise environment (such as where more than 100,000 users are enabled for authentication service), the SQL queries used for generating reports may have significant CPU, memory and I/O requirements. In these situations, Centrify recommends the use of physical machines for SQL Server to allow for better tuning of SQL Server without impacting other systems.
Alternatively, you can install SQL Server in a virtual machine. In such cases, Centrify recommends that you follow the guidelines provided by the virtualization vendors:
https://www.vmware.com/files/pdf/solutions/SQL_Server_on_VMware-Best_Practices_Guide.pdf
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