Does anyone have recommendations on running Splunk under Xen?

http://www.splunk.com/base/Documentation/latest/installation/SystemRequirements 
says "Note: Running Splunk in virtual machine (VM) mode on any platform 
will degrade performance." and the recommended hardware config is at 
least: 2x quad-core Xeon, 3GHz, 8GB RAM.

I'm not really familiar with Splunk.  Does it really require that much 
power to run decently?

Thanks.

Ryan
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