My manager want to buy new HP BladeSystem c3000 with 8 blade servers (2 disks each , 4 GB Ram) for Windows 2003 Std for Terminal Server role ,user will be connecting to those in order to run various applications.
I want to offer him to get those server with 16 GB ram , no disks , and with SAN connection to EMC (we already have ) , Install ESXi and run 5-6 Windows 2003 on each .
The final performance for end user will rise to the sky as 400 users instead of sharing 8 physical servers will be sharing 36 virtual servers and SAN disk performance will for sure overcome slow raid 0 on physical. Memory sharing will help too as all server will be having identical configurations and it will run same apps , this will get us significant RAM savings .
Any ideas how to get him to change his mind about going to physical instead of virtual?

Thanks for reading