When we were done, we had about a dozen new servers that needed to be setup for the project. Mostly Linux, but a few Windows as well. Web server, app server, log/database server, devel, demo,production.
3 years ago the project would have been canceled due to lack of funding for the hardware. It would easily have run around $50,000, and taken several weeks of Linux and Windows admins to go through the setup and tweaking. Possibly far more $$ and far more time, since it never goes well when you are installing a bunch of servers on a deadline. And then we'd have to deal with things failing.
Now, the Linux/VMWare administrator smiles, nodds, and says "When do you want them?"
That is why (hey, you asked) they want in as a VM. Toss it in, ignore the hardware, copy it around as needed, move while live.
I love VMWare.