Performance issues with KVM

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Hello,
We are using libvirt over KVM. If we run a single virtual machine on a host
then the performance is very good but if more than one vm (with 1:1 provisioning)
runs on same host the performance is very poor (specially in case of parallel programming).

libvirt version: 0.9.2
qemu-kvm-0.14.1

We are using virtio module also.
What could be the possible reasons for this behavior. Please tell me if you need more info.

--
Jatin


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