Will virtualization make the server OS redundant?

BEA claims that the new Virtual Edition of its WebLogic Java application server (aka WLS VE) can run directly on VMware’s ESX hypervisor without the need for an intervening operating system. In other words, from now on you will be able to spend all your hard-earned software dollars on BEA and VMware alone, while cutting Red Hat, Novell and Microsoft out of the picture completely.
Can this claim possibly be true?