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This facilitates data center management and diminishes the number of physical machines (servers) and, subsequently, their cooling requirements, leading to cost, space, and power consumption reductions. When applications in data centers are executing independent parallel transactions, but with similar performance requirements, the appropriate level of virtual machine consolidation on a server poses a fundamental challenge for capacity planning. This article introduces a method to evaluate the performance speedup achieved through virtualization on any server and the effects of virtualization and consolidation overheads on physical or virtual machine scalability. This research formalizes the speedup and overheads, using classical computer architecture statements. but at the same time proposes a new method to analyze these overhead amounts and types, showing the scalability and efficiency of different consolidations in the same server and its comparison against no consolidation. This work also proposes a new way to determine the optimal number of physical servers and the optimal number of consolidated virtual machines for a given transaction workload. The real experimentation was performed with different workload sizes, types of virtualizations and different servers. 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