I don't work at Etsy or have any specific knowledge, but it sounds like they already have the tool integration they need with their current setup.
Increasing densities through virtualization allows you to perform more discrete functions, but obviously reduces the aggregate capacity to do so. Etsy specifically has a goal of minimizing instance types, but virtualization would enable them go in a direction counter to their goals.
In my experience, the biggest weakness of virtualization is subpar I/O, and I would imagine that this would be an issue for Etsy as well.
Virtualization has a very real cost. If the performance hit (CPU & I/O) is (say) 20%, that's 20% of your capacity you pay to keep operational but don't get to use. The benefits don't outweigh that cost for every situation.
Increasing densities through virtualization allows you to perform more discrete functions, but obviously reduces the aggregate capacity to do so. Etsy specifically has a goal of minimizing instance types, but virtualization would enable them go in a direction counter to their goals.
In my experience, the biggest weakness of virtualization is subpar I/O, and I would imagine that this would be an issue for Etsy as well.
Virtualization has a very real cost. If the performance hit (CPU & I/O) is (say) 20%, that's 20% of your capacity you pay to keep operational but don't get to use. The benefits don't outweigh that cost for every situation.