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To virtualize or not?

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I have a small AM1 server I built awhile back. It currently is running Ubuntu 14.04.2 headless in the closet. The install is nothing more than a kvm host, and I have been virtualizing everything I do. This was done for learning as well as I found it easier to have single systems (vms) that do one job as opposed to one system doing multiple jobs.

I am beginning to rethink this though. I can't help but think I am making more work for myself to keep multiple vms updated, performance penalties for vms as opposed to bare metal ( minecraft server comes to mind).

I guess my question is at what point does virtualization make more sense than single machine for a home server.

My uses - file server, torrent seedbox, apt-cache-ng proxy, minecraft survival ( 4 players max, lan only ).

The server is not high powered is another reason I am looking for advice. AM1 Kabini 5350, 8gb memory, 120gb ssd, 1tb hdd.

What is my best option?

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