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Virtual Appliances: OS is not relevant, says BEA

Losing the operating system has several benefits. Many OS services are already duplicated by Java or the hypervisor, and BEA estimates that cutting the OS can reduce consumption of system resources such as memory and CPU cycles by 25% to 50%. It also simplifies management, as WLS-VE knows it's being virtualized and so can more easily map software processes to the hardware it's running on. Performance can improve, as a complete OS doesn't have to be loaded whenever a virtual machine is started.

Still, though WLS-VE shipped in July, its Liquid Operations Control management system won't be available until December. Performance claims haven't yet been proved and will depend on using hardware with virtualization support baked in--without it, VMware simply takes the place of the OS.
I have pesonally started a question in the LinkedIn Q&A, feel free to voice your opinions there, and original article is here.

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