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Hyper V Performance Question - compare to Bare Metal

I've tried googling for this and not found an answer

I have 8 HP Servers with Quad core CPUs, 16 GB RAM, and RAID 5 SCSI disks 6x73GB giving me 3x73GB disk space all on the C: drive

We standardised on baremetal in the configuration as there was no need to split the servers.

The apps run a custom https web service with a sql server backend. About 75% of cpu and disk activity is taken up by sql. About 15% by our application, and the remaining 10% by IIS and the OS. Sql Server uses 14-15GB RAM and the rest is OS and our app (small)

Now I'm wondering if I created a single HyperV instance within each server, and moved the software into there, how much performance degradation would I be likely to experience ? - so replacing one bare metal server with one hyperv vm hosted on that same one bare metal server. Hope that makes sense..

I kind of feel that Sql would perform much worse in a virtualised environment but thats more gut feeling than knowledge

The reason - I want to make the VM's moveable for DR and failover reasons. ATM we maintain identical servers and just move the sql databases around for DR, but I feel there would be added resilience if we could move the whole machine.

Microsoft Virtual Server

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You can do what your wanting, in fact, whatever you want if you will allow reads/writes from an ioDrive (or similar tech). For the money you've spent so far I think you could afford it.
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Thanks for this but I can only change the software and add a hyperv guest. I cannot buy hardware.

I just wanted to know how much worse the performance would be in a virtual setup..

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thank you.
Microsoft Virtual Server
Microsoft Virtual Server

Microsoft Virtual Server was a virtualization solution that facilitated the creation of virtual machines on the Windows XP, Windows Vista and Windows Server 2003 operating systems. Virtual machines are created and managed through a web-based interface that relies on Internet Information Services (IIS) or through a Windows client application tool called VMRCplus. Features included Linux guest operating system support, Virtual Disk Precompactor, symmetric multiprocessing (SMP), x64 host operating system support, the ability to mount virtual hard drives on the host machine and additional operating systems support, including Windows Vista, and a volume shadow copy writer.

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