@tomatoes: The VM Host's would host the server farm on a single piece of hardware. RDP is probably the best way to access the VM's.
@ghalied: +100
The reason for the VM push is pretty simple - most single host servers only use about 10% of their capacity. If one hosts many virtual machines on a single hardware platform, one saves, not only in hardware, but also power, aircon and floorspace, all of which can be substantial for a corporate computer room. Further, with the common advent of 64Bit platforms, large memory and storage space, the host servers are capable of hosting ever more virtual machines.
The latest VM software is capable of sharing resources amongst virtual machines in very intelligent ways, so that an individual virtual machine will be changing its resources in a dynamic way - if it needs more processing power it is allocated more cycles, more memory, it is allocated more memory, and once its load decreases the excess is reallocated elsewhere.
When one starts creating farms of Host VM's, then the load can be shares across many physical servers, dynamically on the fly.
The number of VM software publishes is also increasing, so it's not only VMware any more, although the latter are still the main (expensive) choice of the corporates.
For the smaller IT shop it is already an option when considering installing a server to consider going the virtual route and thereby consolidating some of their existent servers.
Implemented intelligently virtual machines can offer a really good solution.