The document compares the performance of VMware vSphere 5 and Red Hat Enterprise Virtualization 3, highlighting that VMware outperforms Red Hat by up to 28.6% in environments with higher VM densities. VMware vSphere 5 demonstrates superior resource management and scalability, allowing for better application performance and reduced costs by optimizing physical resource utilization. Enhanced features such as a direct driver model, high-performance scheduling, and advanced memory management contribute to VMware's advantages over its competitor.