XenEnterprise is quite expensive. It might be better to either hire someone to manage the host and the VPSes, or to learn to administrate xen. Xen isn't *too* hard to manage once you get it up, but, theres always the potential of it breaking horribly. You might end up wanting to get some knowledge before diving into this market
XenEnterprise for a dual cpu machine is about $40/month (annual subscription).
Considering you can archive images, and all the management options you have this looks like a bargain.
I was wondering if you could use install xen on a server even if you only wanted to create only one virtual machine. Then you could backup images, transfer inages between machines etc. and be independent of hardware.
If an unrecoverable hardware failure or software failure occured, simple reinstall the base OS and install the server image. Is that not simpler?
If you were a host you could have a two large VPS machines running in a single server and if one starts using more resources pair it with another VPS that is not use its share. So you can balance servers better.
I am a complete novice so what I say may be not practicle.
There are tradeoffs, though. As with any virtualization technology..there are overhead issues...which vary from technology to technology. All things considered..I believe these trandeoffs..(lost speed) are made up with flexiblility. VMware has the right idea...plugin ready to go virtual appliances. Minimal installation and configuration duties...and it just works.