Oracle have now jumped on the virtualization bandwagon and launched their own VMM based on the Open Source XEN hypervisor. There seems to be a fair amount of confusion around Oracle’s support policy running within a VM environment as noted here Oracle (further) clarifies its support policy for VMware.
But does it really matter?
Well I guess it depends on what you are doing with your Oracle databases. In the course of my technology journey most Oracle databases I have come across are large enterprise class databases which typically require as much hardware as you can throw at them so in this case does the Oracle VM simply provide a better failover option using Live Migration?
Where you would want to run multiple databases on a single host then it is likely these would be SQL Server, mySQL, etc based systems as they offer a much lower cost point for these type of small database systems. Have you seen how many products come with a low-cost (or free) database engine these days. These are exactly the database instances that you want to consolidate and in this case product like VMware or SmartPeak WLM offer a fully supportable solution for the consolidation exercise.
So really I guess the answer is not really, Oracles VM will just end up being part of their database stack. It is even listed under their database product group on their website.