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Segmentation really. KVM doesn't have a not of overhead but with Proxmox you can separate out everything easier. Also it makes moving services between machines very easy. When moving you might end up with a few dropped packets but the VM will stay running as it moves to a different machine.
Interesting. I'll dig a little more then. Most of my vm experience has been on desktop for various reasons, and it's almost always been a pain in the ass and not worth the effort.
I assume the kvm stuff can be running a minimal os, sort of like an alpine docker image?
It runs Proxmox as the base