Red Hat ENTERPRISE LINUX 5 - VIRTUALIZATION GUIDE Installation Guide Page 173

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core processor. Overcommitting symmetric multiprocessing guests in over the physical number of
processing cores will cause significant performance degradation.
Assigning guests VCPUs up to the number of physical cores is appropriate and works as expected.
For example, running virtualized guests with four VCPUs on a quad core host. Guests with less than
100% loads should function effectively in this setup.
Always test first
Do not overcommit memory or CPUs in a production environment without extensive testing.
Applications which use 100% of memory or processing resources may become unstable in
overcommitted environments. Test before deploying.
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