Hi Sanjay –
I have been involved in a PoC related to the same setup. It was on a vBlock with SAN storage. Each vBlock server had 20 blade servers each with 256GB of RAM and 20 cores. We came to a verdict that this setup was not a good setup for worker nodes. The results of the performance were terrible when running a simple teragen job. It was like sending a DDoS attack to the storage layer. This kind of setup would not be a recommended. Additionally, from an installation and operational standpoint using VMWare does make a lot of sense but only using physical hardware that has direct attached storage. This eliminates major performance bottlenecks. There is a lot of benefit operationally by easily provisioning new virtual machines in minutes and adding new nodes to an existing HDP cluster through Ambari. Tools like VMWare BDE greatly helps both from an installation and operational perspective.
Hope this helps!