Abstract-Cloud computing brings significant benefits for service providers and users because of its characteristics: e.g., on demand, pay for use, scalable computing. Virtualization management is a critical task to accomplish effective sharing of physical resources and scalability. Existing research focuses on live Virtual Machine (VM) migration as a workload consolidation strategy. However, the impact of other virtual network configuration strategies, such as optimizing total number of VMs for a given workload, the number of virtual CPUs (vCPUs) per VM, and the memory size of each VM has been less studied. This paper presents specific performance patterns on different workloads for various virtual network configuration strategies. For loosely coupled CPU-intensive workloads, on an 8-CPU machine, with memory size varying from 512MB to 4096MB and vCPUs ranging from 1 to 16 per VM; 1, 2, 4, 8 and 16VMs configurations have similar running time. The prerequisite of this conclusion is that all 8 physical processors are occupied by vCPUs. For tightly coupled CPU-intensive workloads, the total number of VMs, vCPUs per VM, and memory allocated per VM, become critical for performance. We obtained the best performance when the ratio of the total number of vCPUs to processors is 2. Doubling the memory size on each VM, for example from 1024MB to 2048MB, gave us at most 15% improvement of performance when the ratio of total vCPUs to physical processors is 2. This research will help private cloud administrators decide how to configure virtual resources for given workloads to optimize performance. It will also help public cloud providers know where to place VMs and when to consolidate workloads to be able to turn on/off Physical Machines (PMs), thereby saving energy and associated cost. Finally it helps cloud service users decide what kind of and how many VM instances to allocate for a given workload and a given budget.