What Does Virtualization Tax Mean?
Virtualization tax refers to the perceived performance loss of virtual environments as opposed to physical equipment. The term applies to virtual infrastructures, especially those deployed within cloud computing. This term has also been applied to the use of additional licensing fees by virtualization providers to cover the costs of maintenance on underlying equipment.
Techopedia Explains Virtualization Tax
Some have argued that the increased complexity involved with adding a virtualization layer to computing comes at a cost, known as “virtualization tax.” The benefits of flexible, scalable infrastructures may be outweighed by latency and performance issues that arise in the cloud computing environment. In some cases, users of virtualization or cloud services have even abandoned them and returned to traditional physical infrastructures with dedicated hardware.