As stated above, we're using it at the OSUOSL to power all our virtualization for open source projects. It's been working out very well and we haven't had any major outage caused by Ganeti yet. If you want to know more about it I have been blogging and giving sessions about Ganeti. Check those out here:
Also don't forget about a web gui that the OSUOSL is working on written in Django called Ganeti Web Manager. We have a lot more features/bugs to fix but overall is a very usable interface.
We did that because after using git on top of Google Code's SVN backend (using git-svn) for a year or so, we were really limited by Subversion's lack of real brancing/merging. While on top of SVN, we only had two branches, and we did "lose" fixes done on one branch (as in forgetting to forward-port them to the other one) a few times. After switching to git, we're able to easily manage one master branch and two branches per release (so between 3 to 5 or more branches) easily, and with strong merging capabilities (no patches lost).
Today Google Code also offers Mercurial, but we're so used to Git by now… :)
Mozilla is testing out using a small cluster of Ganeti VMs to manage failover for Hadoop/HBase admin services such as NameNode, SecondaryNameNode, JobTracker, and HBase Master.
This isn't an extremely high traffic cluster, and so far, it has been working very well.
Also, the Mozilla IT team has been using it in a few other systems, but I don't know the details of those.
The OSUOSL is a big Ganeti user and have even built a web based front end to allow some of the projects hosted at the OSL to manage their own VMs. See https://supercell.osuosl.org/
If you have any questions about Ganeti installation/configuration or related stuff, remember that we have a (friendly) mailing list — ganeti@googlegroups.com