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Is it possible to use VMs for OpenStack nodes?

We are going to have 3 hefty systems (256 gig memory, > 1 tbyte hard disk each + external NAS, 4 hex-core cpus). I was thinking of putting some of the OpenStack systems into VMs on one or more of the systems. Essentially, I need all three systems to be running VMs

Does this make sense, is it a danger to the stack?

Would it make sense to get some smaller systems to run the OpenStack software? If so, what size systems would be needed. Our total environment will probably be somewhere between 20 and 40 physical servers, with somewhere geather than 300-400 VMs running across the entire installation.

Thanks in advance.

JBB