VMWare and Over Provisioning

Those CPU figures are fine. It reaches no more than 80% in a few bursts but it would be good to look at it over a period longer than an hour.
Also.... remember that VCenter roles up stats, so that hour view is probably at 5 minute resolution, meaning that for four minutes you could have the CPU maxed out and it won't show in the graph.
Have a look on the VM at performance monitor. What is the CPU doing?
What is disk queue length doing? What about the disk read and write msec times? they'll all help get to the bottom of why it is slow.

If you're worried about CPU oversubscription, you should look more at CPU Ready and Wait: (stolen from VMWare: http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalI...)Reviewing performance metrics using the vSphere ClientFor more information on using custom performance charts, see the Customizing Chart Views section of the Resource Management Guide or the View Advanced Performance Charts section of the vSphere Monitoring and Performance Guide.Connect to vCenter Server or an ESX/ESXi host using the vSphere Client.Select the target virtual machine in the inventory.Click the Performance tab.Click Chart Options to customize the performance chart.Under the CPU heading, select Real-time. Under the Chart Type heading, select Line Graph.Under the Objects list, select the virtual machine by name.Under the...

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