Seems quite a few VPS providers use it instead of paying for Virtuozzo; also the developers are significant contributers to the Linux kernel in its attempts to provide something similar as standard.
Main pitfalls of OpenVZ is that its container based virtualization and as such kernel modules cannot be loaded inside the VE, it has to be done on the host. It's also generally quite easy for one rouge VPS to slow down everyone else on the same server. Things like quota support also tends to mess up on a regular basis.
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