Basically VMs give you a computer within your computer.
So if your VM craps out for some reason or another, you can recover really easy as your physical (host) machine is still alive and well.
If you create multiple VMs, say to isolate software then you can have different environments setup pending what you are need rather than putting everything you could possible need on your host machine.
Most will have the host machine just handle "business" type applications. MS Office, Autocad (performace reasons), anything else you need day-to-day. For development, you fire up your Rockwell VM, or your Wonderware VM, or any other VM you may need.
Downside, licensing. You need a license for the OS of the virtual machine. Just because you have Windows on your host doesn't mean you get run Windows in a VM for free (Exception, Windows 7 Pro users can run Windows XP).