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Re:OmniOS: Illumos-based OS from OmniTI by X-Istence on Sunday April 15, 2012 @12:25AM (#3842750)
KVM virtualization has been added back to Illumos and is also available from Joyent as SmartOS:

http://dtrace.org/blogs/bmc/2011/08/15/kvm-on-illumos/

Hopefully the next release of OpenIndiana will add support for it as well, seeing how they also use the Illumos kernel.

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