What is a good way to have a Linux server with a robust virtual environment?

I'd like to have Linux-based server with a robust virtual platform, same as ESXI is for Windows. The hardware is a HP Server with 16GB of RAM, 1TB of hard drive and Intel XEON 3.7GHz.

I was thinking in installing the latest version of Ubuntu Server plus KVM and Open vSwitch, as I saw here.

I'm not an expert in virtualization, so I'd like to know your recommendations, in case there are better options to set up a system like this.