We currently use VmWare for virtualizing a number of internal servers; our intraweb, bugzilla, etc. VmWare is quite nice, but the host machine gets loaded pretty heavily with only few VM's running, and VmWare does cost real cash. Xen would be really nice here.
In fact, I've even considered experimenting with Solaris/X86, since it has (apparently) decent vitualization support, although it does seem a bit complex to manage.
So, while we don't use Xen yet as we don't consider it mature enough, we certainly will give it a hard look once 3.0 hits the streets.
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