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Comments
This seems appropriate.
KVM offers a complete isolation from other VMs on the main physical node. Also, you can run both Linux & Windows with KVM virtualization.
Yes, I understand that KVM is complete isolation and various differences between KVM and openVZ.
I'm also aware of the common things you can do with KVM that you can't do with openVZ.
But I'm asking, what do you actually use that requires KVM and can't be done on openVZ?
NFS shares. Anything requiring a custom kernel (like OpenVZ). Run BSD Variants. Run Windows. Run a custom OS. All sorts of things. Depending on the OpenVZ host, set up your own IPv6 tunnel if native IPv6 isn't available.
Non-oversold hosting with a recent kernel (OpenVZ uses quite old kernels). IPv6 tunnels (for hosts that don't have IPv6). Custom partition layout with LVM (with or without encryption). Running Arch linux. Running an LXC/Xen server.
VPNs work better on KVM once you start doing more than just basic NAT.
I had a /64 of IPv6 and a public IP bridged over 1 VPN through a KVM. I'd hate to try doing it on OpenVZ.
OpenVZ just won't do nat.
It's good to have control of the VPS from the kernel level, and you are not limited on the OS choice
KVM is not needed in all cases, but it is a must have in some cases that previous posters already mentioned. It simply is nice to have more options that is why people prefer KVM.
You can install all os on kvm.
Woops readed wrong thought it was June 2014..
KVM seems to have faster networking and CPU for me, i think hosts don't like to overload KVM nodes!