Is this server good for virtualization?

Yes, for modest workloads. A 2U chassis gives you room for multiple drives and expansion cards, which suits a handful of VMs. Check the CPU, memory and drive configuration of the specific unit before counting on heavy VM density.

How does it compare with newer ProLiant generations?

Newer generations bring faster CPUs, more memory channels and better power efficiency. This server is a solid workhorse for consolidation and general applications, but it is not the pick for maximum performance per watt.

What management features does it include?

HP's management tools cover deployment, monitoring and maintenance, including remote administration on supported configurations. Exact capabilities depend on the model and the iLO generation fitted.

2U servers of this class are audible under load, and fan speed rises with heat and workload. It is better suited to a rack in a server room or closet than to a desk.

What should I check before buying a used unit?

Confirm the CPU model, memory installed, drive bays and caddies, power supply count and the iLO version. Also check the firmware level and whether the generation still receives HP support.