This happened because guest used lots of memory on NUMA machine. The KSM
might merge similar memory pages of different VMs, sitting on different
NUMA memory regions, causing the affected processes to crawl.

Disabled KSM merge_across_nodes:

echo 2 > /sys/kernel/mm/ksm/run && sleep 300 && cat 
/sys/kernel/mm/ksm/pages_shared
If there are no pages shared :

echo 0 > /sys/kernel/mm/ksm/merge_across_nodes && echo 1 > 
/sys/kernel/mm/ksm/run
make sure to set merge_across_nodes in /etc/sysctl.d to stay across reboots.

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https://bugs.launchpad.net/bugs/503138

Title:
  Lucid & Natty, KVM, After kernel message  hrtimer: interrupt too
  slow.... the SMP kvm guest becomes slow.

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