[scprodigy]

But you don't own the server, thus you don't pay for the overhead (if any).

[teilo]

I'm sorry, but you don't know what you are talking about. You pay for what you use. I don't own Amazon's servers either, but I pay for every bit of memory and CPU time that my EC2 instances use, and that includes the memory and CPU time consumed by my instance's kernel.

[scprodigy]

Ok, I'm a bit lost too. So, your question is the memory consumed by the VM kernel? The tradeoff is the ops overhead to manage the VM instance.