For a research project I am trying to boot as many VM's as possible, using python libvirt bindings, in KVM under Ubuntu server 12.04. All the VM's are set to idle after boot, and to use a minimum amount of memory. At the most I was able to boot 1000 VM's on a single host, at which point the kernel (Linux 3x) became unresponsive, even if both CPU- and memory usage is nowhere near the limits (48 cores AMD, 128GB mem.) Before this, the booting process became successively slower, after a couple of hundred VM's.
I assume this must be related to the KVM/Qemu driver, as the linux kernel itself should have no problem handling this few processes. However, I did read that the Qemu driver was now multi-threaded. Any ideas of what the cause of this slowness may be - or at least where I should start looking?