Originally posted by: ostost
You only need a Virtual I/O Server if you want to share I/O resources like network adapters or fibre channel adapters between several LPARs. Also there are some advanced virtualization features like AMS that required a Virtual I/O Server.
If you don't want/need to share adapters you don't need a Virtual I/O Server.
The number of LPARs you can create depends on the type of configuration you use. If you you don't use a Virtual I/O Server each LPAR will need a separate storage and network adapter. So the number of LPARs is limited by the number of adapters you have available.
If you use a Virtual I/O Server the limit will depend on how much CPU and RAM you have available any you assign to each LPAR.
Anyway since you are new to PowerVM and Power Systems I recommended you read through one of these Redbooks:
http://www.redbooks.ibm.com/Redbooks.nsf/RedbookAbstracts/redp4815.html?Open http://www.redbooks.ibm.com/abstracts/sg247940.html?Open#AIX-Forum