Stop. That's the answer. If you get the feeling that you need a physical server it is time to stop and think about what chain of logic (or emotions) is bringing you to this thought, because something has gone wrong. There really are no reasonable cases where you are going to have cause for even entertaining, let alone selecting, a physical install today.
There are extreme edge cases, like the worlds top 1% of low latency trading applications, where physical is warranted, but these are rare and you would never be in a situation of wondering what should be done when that comes up. Don't fall into the trap of thinking that you are special and that all IT knowledge does not apply to you, keep your servers physical.
There are loads of misconceptions around virtualization that might be at fault from thinking that there is a direct association with consolidation, that virtualization requires special licensing or other costs, that a SAN or other external storage device is needed, that virtualization has significant overhead, that your application is special and can't be virtualized, that just because you don't know why virtualization is important that it isn't for you or that you are not big enough (or small enough) to use virtualization. The list of misconceptions could go on all day. I've even seen people believe that login timeouts or other factors so unrelated to virtualization that they could never be anticipated being believed to be reasons to deploy physically.
These things are all myths and ones that are generally shot down in classes, forums, sessions and publications every day, yet remain persistent. Dealing with individual myths is difficult, if not impossible, as you can see some myths are simply unreasonable to anticipate. What is better is to understand that physical deployments are simply not reasonable and should not be considered. When you get that feeling... stop. If you are so uncertain that you feel that you need explanation reach out and ask for peer review to help you understand why virtualization makes sense or, more importantly, why not virtualizing is a bad idea. But if you lack peer review or your peers cannot figure out the reason, do not accept that as justification for going physical. Dig deeper until you have the reason, because going physical is simply not a reasonable solution at the end of the day.