From my post to this issue:
My company essentially virtualized in order to stop wasting so much time with upgrades/system failures.
Whenever a desktop/laptop failed, we'd have to spend a better part of a day fixing it and reloading the software.
So, we went out, bought iMacs for everyone and loaded Parallels (a VMware like product for OSX) on them. Then we made a standard dev image for everyone, and just copied it to everyone's machines.
Essentially, if anyone's configuration got messed, we just loaded in a fresh image and kept on truckin'. Saved a lot of time.
Some additional benefits:
When new software is out, we just make a new image and distribute it. Not OS re-installs or anything like that.
If hardware changes, doesn't matter, just move the image.
You can run multiple os's concurrently for testing
You can take "snapshots" in your current image and revert if you really messed something up.
Multiple builds on the same machine...since you can run multiple os's.
Surprisingly the overhead of a virtualized system is quite low.
We only run the software on a real machine for performance tuning/testing purposes.